UAC of Nigeria Plc (UACN), a diversified Nigerian conglomerate, has reached a definitive agreement to acquire CHI Ltd., a prominent Nigerian food and beverage producer, from The Coca-Cola Company.
The landmark deal, announced in a statement to the Nigerian Exchange (NGX) on Wednesday, is set to reshape Nigeria’s fast-moving consumer goods (FMCG) landscape, positioning UACN as a dominant force in the West African market. While the value of the transaction was not disclosed, it is considered a strategic development for both entities.
CHI Ltd. boasts an extensive portfolio across dairy products, juices, nectars, still drinks, and snacks. Its flagship brands, Hollandia, a market leader in evaporated milk and drinking yoghurt, and Chivita, which dominates the fruit juice segment, are household names across Nigeria. This acquisition will substantially expand UACN’s existing portfolio, which currently includes cereals and restaurants, into high-growth, high-demand beverage and dairy categories.
The transaction, which remains subject to regulatory approvals, represents a strategic milestone in UACN’s growth agenda. For Coca-Cola, the divestment aligns with its global strategy to operate a flexible, asset-light model and sharpen its focus on high-scale brands within its core beverage business. Coca-Cola had initially acquired a 40 per cent stake in CHI in 2016 for $240 million, before purchasing the remaining stake in 2019. Despite the sale, Coca-Cola reiterated its commitment to Nigeria, highlighting a previously announced $1 billion investment plan over five years, contingent on stable macroeconomic and regulatory conditions.
Commenting on the acquisition, Fola Aiyesimoju, group managing director of UACN, expressed enthusiasm for the deal’s transformative potential. “We are pleased to announce the acquisition of Chivita|Hollandia, a leading dairy and juice business in Nigeria,” Aiyesimoju stated. “This deal presents significant potential to build on Chivita|Hollandia’s legacy of excellence and innovation. With this acquisition, we are deepening our presence in Nigeria’s consumer goods market and positioning UAC for long-term sustainable growth,” he added.
The move is expected to provide substantial synergies, leveraging UACN’s operational scale and existing distribution networks with CHI Limited’s strong brand equity and established market penetration. This integration is anticipated to drive cost efficiencies, expand market reach, and unlock new growth opportunities for the combined entity.
Eelco Weber, managing director of Chivita|Hollandia (CHI Limited), reflected on the company’s progress under Coca-Cola’s ownership and expressed optimism about the new partnership. “The business has made significant progress over the past few years, with the Chivita and Hollandia brands becoming clear leaders in their categories,” Weber noted. He extended gratitude to the company’s workforce, stating: “I would like to thank our over 5,000 employees for their hard work and dedication in bringing our business forward and earning us recognition as a Gold-rated Great Place to Work.” Looking ahead, Weber added, “With UAC’s backing, we are confident that the company is poised for an even brighter future, with exciting opportunities for further growth.”
The acquisition will make UACN one of the biggest food firms in West Africa and on the broader African continent, enhancing its competitive standing against both local and international players. The consolidation of such prominent brands under UACN’s umbrella is expected to create a more formidable competitor in Nigeria’s rapidly expanding FMCG sector, offering a wider array of products to a growing consumer base.
