The Coca-Cola Company has announced plans to sell Chivita|Hollandia (CHI Limited), one of Nigeria’s leading food and beverage companies, to UAC of Nigeria PLC (UAC), in a transaction that will reshape the country’s dairy and juice market.
The deal, subject to regulatory approval, will see UAC acquire CHI Limited’s portfolio of market-leading brands, including Hollandia and Chivita. Hollandia is dominant in Nigeria’s evaporated milk and drinking yoghurt segments, while Chivita leads the fruit juice category.
Coca-Cola, in a statement on Wednesday, described the transaction as part of its global strategy to operate a more flexible, asset-light business model, allowing it to focus on brands with the most significant growth potential.
The company said it remains committed to the Nigerian market, noting that the Coca-Cola system has earmarked $1 billion in investments over the next five years, contingent on a stable and enabling environment.
UAC group managing director, Fola Aiyesimoju, said the acquisition represented a significant growth opportunity.
“We are deeply committed to Africa’s growth and are pleased to announce the acquisition of Chivita|Hollandia, a leading dairy and juice business in the region,” he said.
“This acquisition presents significant potential to build on Chivita|Hollandia’s legacy of excellence and innovation. We look forward to working with the team to support the next phase of growth.”
UAC, one of Nigeria’s oldest conglomerates, operates nine manufacturing facilities and several logistics and distribution hubs across the country, employing over 5,000 staff.
Managing director of CHI Limited, Eelco Weber, described the company’s performance in recent years as “remarkable,” noting that the Chivita and Hollandia brands have entrenched their leadership in the market.
“We see a bright future for Chivita|Hollandia. With the strength of our team, coupled with UAC’s dedication, there will be exciting opportunities for further growth,” Weber said.
Weber also paid tribute to CHI Limited’s workforce, praising their contributions to the company’s recognition as a Gold-rated “Great Place to Work” in 2024.
The Coca-Cola Company fully acquired CHI Limited in 2019, having initially purchased a 40 per cent minority stake in 2016. Industry analysts say the proposed sale to UAC will further consolidate UAC’s position as a key player in Nigeria’s consumer goods space.
Citi acted as Coca-Cola’s exclusive financial advisor on the transaction, while McDermott Will & Emery served as legal advisor. UAC was advised by Fasken Martineau LLP and Templars Law.
CHI Limited, incorporated in 1980, is a major producer of juices, nectars, dairy products, still drinks, and snacks in Nigeria. It operates ISO 22000-certified manufacturing facilities and has consistently invested in innovation and local economic growth.
