PRESS RELEASE
UAC, FAMOUS BRANDS ANNOUNCE STRATEGIC PARTNERSHIP
UAC of Nigeria PLC (UAC), a leading diversified Company with operations in foods, paints, logistics and real estate, has announced a strategic partnership with Famous Brands, the leading quick service and casual dining restaurant operator in Africa, which is to acquire a 49% stake in UAC Restaurants Limited (UACR), hitherto a wholly-owned company of UAC.
Famous Brands Ltd is an investment holding company listed on the Johannesburg Stock Exchange. The company is an integrated food and beverage company whose primary activities include the franchising of trademarks, either company owned or licensed, to Quick Service Restaurant franchisees and the manufacture and supply of products to these franchisees and the retail trade. Some of Famous Brands’ well known operations already in Nigeria include Debonairs Pizza and Steers.
Speaking on the move, Mr Larry Ettah, Group Managing Director/CEO of UAC said: “We are delighted to partner with Famous Brands in this venture. This is a transformative transaction which ensures UACR has the necessary strategic partner to unlock the considerable value potential in the QSR landscape which Mr Bigg’s defined 25 years ago and in which it still maintains a leadership position. UACR will be availed of Famous Brands’ tested and highly successful brand stewardship to enhance and reinforce the Mr Bigg’s brand market power. This deal further reinforces UACN’s commitment to ensure we collaborate and leverage international partnerships to accelerate our strategic growth and progress.”
On his part, Mr Kevin Hedderwick, Famous Brands Chief Executive, says of the partnership: “Historically one of the key challenges of expanding into the rest of Africa has been to source suitable local partners. This acquisition surmounts that obstacle and enables us to not only acquire a substantial stake in an existing leading home-grown brand in Nigeria with opportunities to unlock value in that market, but also to export the format to other markets. We foresee our operations in the rest of Africa becoming increasingly significant to the Group over time.”
“This joint venture delivers compelling benefits for both parties: UACR will be vending in a formidable brand (Mr Bigg’s), local expertise as well as a nationwide distribution network and Lagos-based manufacturing infrastructure. In exchange, Famous Brands will add value to the business through our expertise in managing intellectual property, growing brands and optimising supply chain operations and efficiencies.”
