Coca-Cola Unloads Nigeria's Chivita Hollandia Dairy-and-Juices Business to UAC of Nigeria

Coca-Cola has agreed to sell its Nigerian dairy-and-juices business, Chivita Hollandia, to local food-and-beverage group UAC of Nigeria. Financial terms were not disclosed. The deal aligns with Coca-Cola's strategy to operate a flexible and asset-light model and focus on brands with the greatest potential to scale. Chivita Hollandia produces fruit juices, nectars, and yogurt products under the Chivita and Hollandia brands. UAC of Nigeria's product range includes Gala sausage rolls, Funtime snacks, and Supreme ice cream.

The Coca-Cola Company has agreed to sell its Nigerian dairy-and-juices business, Chivita Hollandia, to local food-and-beverage group UAC of Nigeria. The transaction, which is subject to regulatory approval, aligns with Coca-Cola's strategy to operate a flexible and asset-light model and focus on brands with the greatest potential to scale [1, 2, 3].

Chivita Hollandia, also known as Chi Ltd, produces fruit juices, nectars, and juice drinks under the Chivita brand, as well as yogurt and milk products under the Hollandia brand. UAC of Nigeria's product range includes Gala sausage rolls, Funtime snacks, and Supreme ice cream. The acquisition is expected to deepen UAC's footprint in Nigeria's fast-moving consumer goods (FMCG) landscape [2].

The deal marks a significant milestone for UAC, which operates nine manufacturing facilities and several logistics and distribution hubs across Nigeria, employing approximately 5,000 employees. Fola Aiyesimoju, Group Managing Director of UAC, expressed his pleasure with the acquisition, stating that it presents significant potential to build on Chivita Hollandia’s legacy of excellence and innovation [1, 2].

Eelco Weber, Managing Director of Chivita Hollandia, highlighted the business's progress under Coca-Cola's ownership and remains optimistic about the future under UAC. Weber noted that the Chivita and Hollandia brands have emerged as clear leaders in their categories [1, 2].

The acquisition is expected to boost UAC's market share in Nigeria's dairy and juice markets. The company's shares hit a 52-week high following the announcement, rallying by 9.94 percent to N73, as investors responded positively to the deal [4].

Coca-Cola's divestment strategy aims to focus on core brands and markets where it can achieve the highest growth potential. The company recently pledged to invest $1 billion in Nigeria over five years, contingent on a stable and supportive business environment [1, 3].

The financial terms of the acquisition were not disclosed, but the deal is expected to be finalized once regulatory approval is obtained. Both companies have expressed confidence in the potential growth prospects of Chivita Hollandia under UAC's ownership.

References:
[1] https://guardian.ng/featured/coca-cola-agrees-to-sell-chi-to-uac/
[2] https://guardian.ng/business-services/coca-cola-agrees-to-sell-chivita-hollandia-brands-to-uac/
[3] https://finance.yahoo.com/news/coca-cola-sells-nigeria-dairy-114940743.html
[4] https://businessday.ng/markets/article/uac-shares-hit-52-week-high-on-chivita-acquisition/