UAC of Nigeria Plc has announced an agreement to acquire Chi Limited, producers of Chivita and Hollandia, from the Coca-Cola Company.
Chi Limited is a food and beverage player in Nigeria, with a portfolio across value-added dairy products, juices, nectars, still drinks, and snacks.
In a statement on Wednesday, UAC said the transaction, which is subject to regulatory approval, marks a strategic milestone in UAC’s growth agenda and expands its presence in Nigeria’s fast-moving consumer goods sector.
The company also noted that the move aligns with Coca-Cola’s shift toward a more flexible, asset-light business model focused on scaling its highest-potential brands.
“The Coca-Cola system recently announced it will invest $1 billion in Nigeria over five years and remains committed to these investments, provided a predictable and enabling environment is in place,” the statement reads.
“This investment underscores the importance of Africa as a long-term growth opportunity for the Coca-Cola system.”
Fola Aiyesimoju, group managing director of UAC, said the acquisition presents significant potential to build on CHI Limited’s legacy of excellence and innovation.
“As a company with a strong presence in Africa, we are deeply committed to the continent’s growth. We are pleased to announce the acquisition of Chivita|Hollandia (CHI Limited), a leading dairy and juice business in the region,” Aiyesimoju said.
“This acquisition presents significant potential to build on Chivita|Hollandia’s (CHI Limited’s) legacy of excellence and innovation.
“I would like to thank the management and staff of Chivita | Hollandia (CHI Limited) and look forward to working with the team to support the next phase of growth.”
Eelco Weber, managing director of CHI Limited, said the company has made strong progress in recent years and is well-positioned for future growth.
“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,” Weber said.
“We see a bright future for Chivita|Hollandia (CHI Limited). With the strength of our team, coupled with the dedication of UAC, there will be exciting opportunities for further growth.”
According to the statement, Fasken Martineau LLP and Templars served as legal advisors to UAC, while Citi served as exclusive financial advisor to Coca-Cola, with McDermott Will & Emery acting as legal advisor.
On January 30, 2019, Coca-Cola announced the acquisition of Chi Limited, stating that it has extended its minority investment in the company to full ownership.
