Suntory Beverage & Food Asia Pacific (SBFAP) has agreed to sell its Nigerian subsidiary – Suntory Beverage & Food Nigeria (SBFN), to Africa FMCG Distribution Ltd (AFDL).
Suntory Beverage & Food Limited, its parent company announced on Wednesday in a statement.
The transaction is said to be worth about $14million and the completion of the sale is subject to receiving merger clearance from relevant regulatory authorities in Nigeria.
According to the statement, the sale is expected to be completed in the second quarter of 2022 with $7 million each for the transfer of shares and loans.
“As part of our regular strategic portfolio review and considering the broad options in Nigeria to accelerate the growth of our brands, we have decided that it is best to launch a new operating model in Nigeria, leveraging the extensive distribution network, and the expertise in the local market that AFDL possesses,” said Kazuhiro Saito, CEO of SBF.
SBF has been the brand owner of Ribena and Lucozade since 2013 and the iconic brands are loved by consumers across the globe, including in Nigeria.
SBF aims to deliver high-quality, value-added products that continuously appeal to consumers worldwide, having been a pioneer of research and development since its beginnings.
Also, Subodh M Chanrai, executive chairman of Chanrai Summit Group said that AFDL is immensely happy to participate in this opportunity and partner with a global giant like Suntory.
He reasserted the commitment of the group to local value addition and to helping global brands to retain their presence in Nigeria, creating opportunities for all stakeholders in the country.
Chanrai Summit Group, the parent of AFDL, is a multi-faceted company distributing products that touch the lives of African consumers every day.
They manage a robust supply chain management infrastructure through the import, manufacture and distribution of products covering branded Food, Fast Moving Consumer Goods, and Appliances for the best multinationals in the world.
Anjan Patole, managing director of SBFN added that the company was pleased with the outcome of the transaction.
“The sale of our beverage operations in Nigeria signifies a fantastic opportunity to leverage on Chanrai’s Group expertise to expand the business and talents of our people beyond our current potential,” he said.
“Their extensive global systems, agility to changing market needs with a focus on African consumers are all qualities that align with that of our business here,” he said.
Sherring Thekekkara, CEO of AFDL, added that this investment will benefit from the strengths of both parent companies in a big way.
“Leveraging experience, streamlining the supply chain, enhancing manufacturing, consistent innovation and improving seamless route to market among others will ensure that the Nigerian consumer continues to enjoy their favourite brands Lucozade and Ribena even more passionately.”
The sale agreement does not impact SBF’s other businesses in Africa.