Nigerian Breweries Plc has announced the completion of the acquisition of an 80% controlling stake in Distel Wines and Spirit Nigeria Limited in an effort to increase the variety of products it offers beyond beer.
This was disclosed in a notice filed by the Corporate Affairs Director of Nigerian Breweries, Sade Morgan with the NGX on Sunday.
According to the notice, the acquisition of an 80% stake in Distel Wines and Spirits Nigeria Limited follows approval from the South Africa Reserve Bank for Nigeria Breweries to acquire the shares of the parent company in Distel Nigeria and the import business of the parent company (Distel International) in Nigeria.
The statement reads, “Nigeria’s foremost brewing company, Nigerian Breweries Plc, has officially completed the acquisition of a majority stake (80%) in Distell Wines and Spirits Nigeria Limited (Distell Nigeria).”
“The completion of the transaction follows the approval of the South Africa Reserve Bank (SARB) for the acquisition by Nigerian Breweries Plc, of the shares of the South African entity, Distell International Limited (now known as Heineken Beverages Holdings Limited) in Distell Nigeria, as well as the import business of Distell International Limited in Nigeria.”
According to its CEO, Hans Essadi, the acquisition of Distel Nigeria Limited to Nigerian Breweries portfolio signals the addition of wines, spirits, and other flavored alcoholic beverages to the product offerings of Nigerian Breweries.
He said, “This acquisition is part of efforts to provide access to a complementary multi-category portfolio of fast-growing brands of wines and spirits market segment and capture significant growth opportunities in the wines and spirits segment of the brewing industry. We are excited to have the process completed and can’t wait to see how this transforms our business.”
Meanwhile, the Managing Director of Distel Nigeria Limited, Steve Ighorimoto, said the acquisition would increase value for all parties involved and strengthen the company’s ability to market, produce, and distribute its goods.
“We are excited to be a part of Nigerian Breweries, as we share in the solid track record of growth, including a highly engaged, dynamic, experienced, and diverse team. These changes will strengthen the organization’s manufacturing, marketing, and distribution capabilities while ensuring sustainable growth and maximum value creation for all stakeholders,” he said.
Heineken Beverages is the sole owner of Distell International Limited, which included Distell Nigeria as a subsidiary prior to this takeover. Distell International Limited, which was founded in 2018 and has its headquarters in Lagos, Nigeria, owns 80% of Distell Nigeria.
