UAC of Nigeria announced in a statement on Wednesday that it reached an agreement to take over Chivita/Hollandia (Chi Limited) from Coca-Cola Company Limited.
Chi Limited is a leading manufacturer of food and beverages. It produces juices, value-added dairy products, nectars, and snacks.
Among the iconic brands in its portfolio are Chivita, CapriSun and Hollandia Yoghurt.
The acquisition allows UAC, whose food business boasts of key brands such as Gala, Supreme Ice Cream and Swan Table Water, to broaden its portfolio. It is subject to regulatory approval.
“We are pleased to announce the acquisition of Chivita/Hollandia (Chi Limited), a leading dairy and juice company in the region,” said UAC Group Managing Director Fola Aiyesimoju.
“The acquisition presents significant potential to build on Chivita Hollandia (Chi Limited’s) legacy of excellence and innovation,” he added.
UAC reported an 18.4 per cent drop in net profit to N7.7 billion for the first six months of the year, compared to the same period of last year.
Its revenue for the period rose to N110.4 billion from N83.3 billion, according to its latest earnings report.
“I would like to thank our over 5,000 employees for their hard work and dedication in bringing our business forward and earning us recognition as a Gold-rated Great Place to work,” said Eelco Weber, the managing director of Chivita/Hollandia (Chi Limited).
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“With the strength of our team, coupled with the dedication of UAC, there will be exciting opportunities for further growth.”
Forsaken Martineau LLP and Templars acted as legal advisors to UAC and served as Coca-Cola’s exclusive financial advisors.
In 2019, Coca-Cola completed a full acquisition of Chi Limited, having acquired a minority stake in the company three years earlier from Tropical General Investments Group.
It has stated its plans to invest $1 billion in Nigeria over the next five years.
