UAC Nigeria exits Livestock Feeds in N19.5 billion deal with Sunbeth

UAC of Nigeria Plc has agreed to sell its 73.29% shareholding in Livestock Feeds Plc to Sunbeth Treenuts and Sesame Limited in an all-cash transaction valued at N19.5 billion.

The deal, announced in a corporate disclosure signed by Ayomipo Wey, Company Secretary and Group General Counsel, values Livestock Feeds shares at N8.85 per share and remains subject to regulatory approvals.

The transaction will see UAC exit a business it has controlled since 2013, while positioning Sunbeth to expand its presence across Nigeria’s agro-processing value chain.

Management reactions

Commenting on the transaction, Group Managing Director of UAC, Fola Aiyesimoju, said the company had worked closely with Livestock Feeds’ management over the years to significantly scale the business.

• “UAC has worked with the Company’s management to drive significant growth and expansion with revenues increasing 5x and profitability increasing 18x.”

He added that Sunbeth is well-positioned to support the next phase of the company’s growth.

• “Following the Transaction, Sunbeth is keen to continue to work with Livestock Feeds’ management and employees to drive the next phase of the Company’s expansion, leveraging its rich heritage in the Nigerian agro-allied sector.”

Jeroen de Ruijter, Chief Financial Officer of Sunbeth Agro HoldCo, described the acquisition as a key step in the company’s strategy to build an integrated African agribusiness platform.

• “Our business has developed deep capabilities at origin, working across agricultural supply chains and building strong relationships with producers, customers, and global partners. We believe the next phase of our growth is about combining those strengths with world-class processing and manufacturing capabilities closer to the markets we serve.”

He said Livestock Feeds brings a strong legacy, established brands and an important position within Nigeria’s agricultural sector.

• “Livestock Feeds is a business with a remarkable heritage, established brands, experienced people and an important role in Nigeria’s agricultural economy. We see significant opportunity to build on these foundations.”

According to him, the immediate focus after completion will be strengthening operations and enhancing supply-chain efficiency.

• “Our immediate priority will be to work with the existing management team and employees to strengthen the business, improve supply-chain efficiency and support its next phase of growth.”

De Ruijter added that the transaction underscores Sunbeth’s long-term commitment to Nigeria’s agricultural sector.

• “For Sunbeth, this transaction is about much more than acquiring an asset. It reflects our confidence in Nigeria’s agricultural sector and our ambition to continue investing in businesses and capabilities that can strengthen African food systems, create value locally, and build globally competitive agricultural enterprises from Africa.”

UAC’s strategic exit

UAC first acquired a controlling interest in Livestock Feeds in 2013.

During its ownership, the animal feed producer, which was originally established by Pfizer in 1963, expanded, with the company recording substantial growth in revenue and profitability.

The divestment represents a strategic exit for UAC as it monetises its investment in the business after more than a decade of ownership.

For Sunbeth, the acquisition aligns with its ambition to evolve beyond agricultural sourcing, warehousing and commodity trading into a broader agro-industrial platform.

The deal is also expected to combine Sunbeth’s agricultural sourcing network with Livestock Feeds’ manufacturing operations, potentially strengthening supply-chain integration and market reach.

Banwo & Ighodalo as legal advisers

Banwo & Ighodalo acted as legal advisers to UAC on the transaction.

On the buy side, FigPartners Africa and CardinalStone Partners served as financial advisers to Sunbeth, while Olaniwun Ajayi LP acted as legal adviser.

Completion of the transaction remains subject to obtaining the required regulatory approvals.

Significant portfolio move

The announcement comes months after UAC of Nigeria completed the consolidation of its acquisition special purpose vehicle, UAC Food and Beverage Company Limited, into C.H.I. Limited.

UAC said the move was part of efforts to simplify its corporate structure following the completion of its acquisition of the beverage company.

According to the company, the special purpose vehicle was created solely to facilitate the acquisition and did not conduct independent business operations. Following the successful completion of the transaction, UAC said the vehicle’s continued existence was no longer necessary.

The Livestock Feeds divestment marks another significant portfolio move by UAC as the conglomerate continues to reshape its investment portfolio and capital allocation strategy.