The Coca-Cola Company has entered into an agreement to sell Chivita|Hollandia (CHI Limited), the producer of Chivita and Hollandia brands, to UAC of Nigeria PLC (UAC).
The disclosure was contained in a statement signed by Zainab Obagun, Head, Public Affairs & Communications, Chivita|Hollandia (CHI Limited), on Wednesday.
According to the statement, the transaction, which is subject to regulatory approval, will see UAC take over one of Nigeria’s leading juice and dairy businesses. CHI Limited is known for its flagship brands, Hollandia—Nigeria’s market leader in evaporated milk and drinking yoghurt and Chivita, which dominates the fruit juice segment.
Coca-Cola explained that the move aligns with its global strategy to maintain a flexible and asset-light operating model, focusing resources on brands with the greatest potential to scale.
“The Coca-Cola Company today announced that it has entered into an agreement to sell Chivita|Hollandia (CHI Limited) to UAC of Nigeria PLC (UAC). Chivita|Hollandia (CHI Limited) is a leading food and beverage player in Nigeria, with a portfolio across value-added dairy products, juices, nectars, still drinks, and snacks. The Hollandia brand is the market leader in evaporated milk and drinking yoghurt, while the Chivita brand is the market leader in fruit juice.
“This transaction, which is subject to regulatory approval, further supports The Coca-Cola Company’s strategy to operate a flexible and asset-light model and focus on brands that have the greatest potential to scale,” the statement read in part.
The statement also noted that Coca-Cola remains committed to Nigeria, referencing its previously announced plan to invest $1 billion in the country over five years, provided that a predictable and enabling business environment is sustained.
More insights
UAC, a diversified consumer goods company with nine manufacturing facilities and a strong distribution network across Nigeria, described the acquisition as a significant opportunity to broaden its portfolio.
“We are pleased to announce the acquisition of Chivita|Hollandia (CHI Limited), a leading dairy and juice business in the region,” said Fola Aiyesimoju, Group Managing Director of UAC, in the statement.
“This acquisition presents significant potential to build on Chivita|Hollandia’s legacy of excellence and innovation.”
Eelco Weber, Managing Director of Chivita|Hollandia (CHI Limited), also expressed optimism about the future of the brands under the new ownership. He commended the company’s 5,000 employees for their contributions in making Chivita and Hollandia market leaders and a Gold-rated “Great Place to Work.”
The statement added that Citi acted as exclusive financial adviser to Coca-Cola, while McDermott Will & Emery provided legal counsel. UAC was advised by Fasken Martineau LLP and Templars Law.
