Business
Guinness Nigeria acquires Diageo’s Nigerian business in N2.35b deal
Guinness Nigeria Plc and Diageo Plc have reached agreement on the sale of the distribution rights to Diageo’s international premium spirits (IPS) brands in Nigeria to Guinness Nigeria, in a deal valued at N2.35 billion.
As part of the transaction, Guinness Nigeria would also take over various assets including the current inventory of Diageo Brands Nigeria Limited, the wholly-owned Diageo business which currently distributes and markets the IPS brands in Nigeria.
Diageo, global leader in beverage alcohol, is the majority shareholder in Guinness Nigeria. Diageo’s collection of brands includes Johnnie Walker, Crown Royal, JεB, Buchanan’s and Windsor whiskies, Smirnoff, Cîroc and Ketel One vodkas, Captain Morgan, Baileys, Don Julio, Tanqueray and Guinness. Diageo’s products are sold in more than 180 countries around the world and the company is listed on both the London Stock Exchange (DGE) and the New York Stock Exchange (DEO).
The transaction is expected to be concluded by December 31, 2015 and the new distribution agreement for the IPS brands will become effective on January 1, 2016, subject to receiving all regulatory approvals.
Managing director, Guinness Nigeria Plc, Mr. Peter Ndegwa, said the acquisition would facilitate the achievement of the company’s ambition to create the best performing, most trusted and respected consumer products company in Nigeria by leveraging the strength of its portfolio of beer, adult premium non-alcoholic drinks (APNADs), ready to drink (RTDs) as well as spirits.
“The integration of the Diageo IPS brands with the Guinness Nigeria brand portfolio best fits our strategy of filling the gap in our total beverage alcohol portfolio, and allows us to compete across segments within the market,” Ndegwa stated in a release signed by the Guinness Nigeria’s company secretary-Sesan Sobowale, confirming the acquisition.
The acquired brands will join Guinness Nigeria’s collection of products which include Guinness, Foreign Extra Stout and Extra Smooth, Malta Guinness, Harp Lager, Dubic Lager, Snapp and Orijin.
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