Suntory Beverage & Food Limited (SBF), makers of Ribena and Lucozade, has agreed to sell its Nigerian subsidiary, Suntory Beverage & Food Nigeria (SBFN), to Africa FMCG Distribution Ltd (AFDL) for $14 million.
The completion of the transaction is subject to receiving merger clearance from relevant regulatory authorities in Nigeria. The total consideration of the $14 million sale transaction (|$7 million each for the transfer of share and loan) is expected to be completed in the second quarter of 2022.
SBF is the brand owner of Ribena and Lucozade since 2013 and the iconic brands are loved by consumers across the globe, including 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.
Chanrai Summit Group, 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 multi-nationals in the world.
CEO of SBF, Kazuhiro Saito, said, “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.”
Managing Director of SBFN, Anjan Patole, stated 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. Their extensive global systems, agility to changing market needs with a focus on African consumers are all qualities that aligned with that of our business here,” he said.
The CEO of AFDL, Sherring Thekekkara, added that this investment will benefit from the strengths of both parent companies in a big way. Leveraging experience, streamlining supply chain, enhancing manufacturing, consistent innovation and improving seamless route to market etc will ensure that the Nigerian consumer continues to enjoy their favourite brands “Lucozade” and “Ribena” even more passionately.
Source : Leadership