Nigerian Breweries has completed the full acquisition of Distell Wines and Spirits Nigeria by purchasing the remaining 20% stake. This acquisition simplifies operations and allows the company to diversify its product offerings, particularly in wines. The relocation to a self-owned manufacturing facility aims to enhance production capacity, despite facing financial losses linked to naira depreciation.
Nigerian Breweries, a subsidiary of Heineken N.V., has successfully acquired a full 100% stake in Distell Wines and Spirits Nigeria Limited by purchasing an additional 20% of the shares. This came after the company had previously acquired an 80% share, following approval from South Africa’s Reserve Bank. This acquisition allows for a complete takeover of Distell’s interests in Nigeria and enhances its local beverage operations.
This acquisition was formalized through a sale and purchase agreement with the minority shareholders, Ekulo International Limited and Next International Nigeria Limited, who each held a 10% stake. The move is expected to simplify decision-making processes and assist Nigerian Breweries in diversifying its offerings beyond beer to include a variety of wines.
Furthermore, Nigerian Breweries has moved its manufacturing operations into its own facility, which is anticipated to improve production capacity for Distell brands. This strategy is aimed at maximizing efficiency and leveraging economies of scale provided by Nigerian Breweries.
CEO Hans Essaadi emphasized the acquisition’s strategic importance in providing access to a diverse product range of wines and spirits, capturing growth opportunities within this sector. Notable brands under Distell include Chamdor, Hunters Dry, 4th Street, and Savanna, while Nigerian Breweries also distributes international brands such as Drosty Hoff and Nederburg wines.
Despite these strategic acquisitions, Nigerian Breweries faced significant financial challenges, recording a net loss of N145 billion last year, primarily due to naira devaluation. Their total assets slightly increased to N1.14 trillion, signifying ongoing investment in their operations and market presence despite economic setbacks.
Nigerian Breweries has fully acquired Distell Wines and Spirits Nigeria Limited, which is poised to enhance its product portfolio by including wines alongside beer. The acquisition, coupled with the relocation of manufacturing operations, aims to improve operational efficiency. Despite financial challenges due to foreign currency devaluation, the company’s strategic movements reflect a commitment to growth in the beverage sector.
Original Source: www.premiumtimesng.com
