Guinness offers N2.35bn for Diageo distribution rights

Guinness Nigeria has acquired the exclusive distribution rights to the international premium spirits (IPS) brands of Diageo Plc in Nigeria, with consideration for the transaction at N2.35billion.

This transaction was communicated to the Nigerian Stock Exchange (NSE) yesterday. The share price of Guinness Nigeria plc rose most yesterday at the local bourse from N125 to N127.45, adding N2.45.

As part of the transaction, Guinness Nigeria will also take over various assets, including the current inventory of Diageo Brands Nigeria Limited, the wholly-owned Diageo business which currently distributes and markets the IPS brands in Nigeria.

The transaction which is approximately N2.35bn is expected to be concluded by December 31, 2015 and the new distribution agreement for the IPS brands will become effective on January 1, 2016 subject to receiving all regulatory approvals.

Peter Ndegwa, the Managing Director/CEO of Guinness Nigeria Plc commented: “The transaction we are announcing today will facilitate the achievement of our ambition to create the best performing, most trusted and respected consumer products company in Nigeria by leveraging the strength of our unparalleled portfolio of beer, adult premium non-alcoholic drinks (APNADs), ready to drink (RTDs) as well as spirits.

“The integration of the Diageo IPS brands with the Guinness Nigeria brand portfolio best fits our strategy of filling the gap in our total beverage alcohol portfolio, and allows us to compete across segments within the market”.

Guinness Nigeria Plc is a leading alcohol beverage manufacturer in Nigeria and one of the oldest companies in Nigeria. Listed on the Nigerian Stock Exchange in 1965, Guinness Nigeria is also one of the foremost quoted companies in Nigeria, having built its first brewery in Ikeja in 1962, and currently has facilities in Ogba, Benin City and Aba.

Brands from the stables of Guinness Nigeria include Guinness, Foreign Extra Stout and Extra Smooth, Malta Guinness, Harp Lager, Dubic Lager, Snapp and Orijin.

Guinness Nigeria Plc is a member company of Diageo Plc; a global leader in beverage alcohol with an outstanding collection of brands such as Johnnie Walker, Smirnoff, Ciroc, JB, Baileys, Cuervo, Tanqueray and Captain Morgan amongst others.

Diageo is a global leader in beverage alcohol with an outstanding collection of brands. These brands include Johnnie Walker, Crown Royal, JεB, Buchanan’s and Windsor whiskies, Smirnoff, Cîroc and Ketel One vodkas, Captain Morgan, Baileys, Don Julio, Tanqueray and Guinness.

Diageo is a global company, and our products are sold in more than 180 countries around the world. The company is listed on both the London Stock Exchange (DGE) and the New York Stock Exchange (DEO).

Iheanyi Nwachukwu