By Adedapo Adesanya
Suntory Beverage & Food Limited (SBF) has announced that its subsidiary, Suntory Beverage & Food Asia Pacific (SBFAP), has entered into an agreement to sell its subsidiary in Nigeria, Suntory Beverage & Food Nigeria (SBFN), to Africa FMCG Distribution Ltd (AFDL) for $14 million. SBF is the brand owner of Ribena and Lucozade since 2013.
The completion of the transaction is subject to receiving merger clearance from relevant regulatory authorities in Nigeria.
The total consideration of the transaction, which is around $14 million, will be split into $7 million each for the transfer of shares and loan.
According to a press release seen by Business Post, the sale is expected to be completed in the second quarter of 2022.
Chanrai Summit Group, the parent of AFDL, is a multi-faceted company distributing products that touch the lives of African consumers every day. The group manages a robust supply chain management infrastructure through the import, manufacture and distribution of products covering branded food, Fast Moving Consumer Goods (FMCG), and appliances for the best multinationals in the world.
Speaking on the deal, Mr Kazuhiro Saito, CEO of SBF 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.”
On his part, Mr 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 retain their presence in Nigeria, creating opportunities for all stakeholders in the country.
Mr 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. 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.
Also speaking for the buyers, Mr Sherring Thekekkara, CEO of AFDL, added that this investment will benefit from the strengths of both parent companies in a big way as it will leverage experience, streamline the supply chain, enhance manufacturing, consistent innovation and improve seamless routes to market which will ensure that the Nigerian consumer continues to enjoy Lucozade and Ribena.
Business Post understands that the sale agreement does not impact SBF’s other businesses in Africa.
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