UAC of Nigeria Plc has confirmed that its planned acquisition of CHI Limited—producers of Chivita and Hollandia beverages—is fully funded and expected to close within the next two to four months, pending regulatory approvals.

Group Managing Director and CEO Fola Aiyesimoju disclosed this during a recent investor call, assuring stakeholders that the deal is backed by a combination of internal funds and bank financing.

“This was not an opportunistic deal,” Aiyesimoju explained. “We had planned for this, years in advance, ensuring our foundation—people, IT systems, risk controls—was strong enough to manage a larger business. The acquisition fits perfectly into our long-term strategy.”

Although UAC did not disclose the purchase price for CHI Limited, the acquisition is being made against the backdrop of a strong balance sheet.

“We are still constrained in what we can disclose at this stage,” said Aiyesimoju. “This transaction is subject to regulatory approval and involves a private company, so unfortunately, there are aspects I cannot comment on.”

UAC reported about N46 billion in cash and bank balances in its latest financials, though its free cash flow stands at approximately N8.7 billion—suggesting the company is relying partly on debt to finance the acquisition.

Aiyesimoju reaffirmed that the deal aligns with a strategy first outlined in 2022, when UAC began defining parameters for growth through acquisitions, targeting familiar sectors and businesses within the Nigerian market.

“We decided to focus on the familiar acquisitions in Nigeria and in sectors we understand well,” he said. “Chi fits that playbook.”

Chi Limited, one of Nigeria’s leading fast-moving consumer goods companies, owns a portfolio of brands with strong market positions in fruit juices, dairy drinks, and snacks.

Its flagship brands—Chivita and Hollandia—are widely recognized household names across the country.

The company was previously owned by The Coca-Cola Company, which acquired an initial 40% stake in 2016 and completed a full takeover in 2019. According to Coca-Cola’s 2020 earnings report, it paid $257 million in cash (net of cash acquired) for the remaining 60% stake.

However, Coca-Cola also reported a $118 million write-down in accounting loss after revaluing its initial 40% stake in Chi.