Nigerian Breweries has completed a full acquisition of Distell Wines and Spirits Nigeria by purchasing the remaining 20 percent stake, enhancing its operational efficiency and diversifying its product range. The company expects this move to improve decision-making processes and leverage economies of scale. Despite recent financial challenges, Nigerian Breweries aims for growth in the beverage sector post-acquisition.
Nigerian Breweries, a subsidiary of Heineken N.V., has completed its acquisition of Distell Wines and Spirits Nigeria Limited by purchasing the final 20 percent stake. This acquisition permits full ownership of Distell, following the earlier purchase of an 80 percent stake approved by South Africa’s Reserve Bank last June. This deal facilitated Nigerian Breweries’ acquisition of shares from Heineken Beverages Holdings Limited and the import business of Distell International Limited in Nigeria.
According to a statement from Nigerian Breweries, the completion of this acquisition was made possible via a sale and purchase agreement with the minority shareholders, Ekulo International Limited and Next International Nigeria Limited, each holding a 10 percent stake. The company is optimistic that full ownership will streamline operations and decision-making, aiding its strategy to diversify beyond beer and enhance its product offerings within the local beverage sector.
Furthermore, Nigerian Breweries has shifted its manufacturing operations to its owned facility, which is anticipated to increase production capacity for Distell Wines and Spirits. The organization intends to capitalize on economies of scale that its broader operations can provide. CEO Hans Essaadi emphasized that this acquisition aligns with their objective to access a diversified portfolio of rapidly growing brands within the wines and spirits segment.
Distell Wines and Spirits Nigeria produces well-known brands such as Chamdor, Hunters Dry, 4th Street, and Savanna. In contrast, Nigerian Breweries offers imported brands including Drosty Hoff, Nederburg wines, Amarula Cream Liqueur, and Bain’s Whisky. Despite this strategic move, Nigerian Breweries has reported a significant net loss of N145 billion last year, attributed to the devaluation of the naira, with total assets reported at N1.14 trillion as of the end of 2024, reflecting slight growth from the previous year.
In summary, Nigerian Breweries has fully acquired Distell Wines and Spirits Nigeria Limited, enhancing its portfolio within the beverage industry. This strategic acquisition is anticipated to simplify operations, improve decision-making, and expand its product diversification. Despite facing substantial financial losses due to currency devaluation, Nigerian Breweries remains focused on leveraging this acquisition for future growth in the wines and spirits market.
Original Source: www.premiumtimesng.com
