Guinness Nigeria Plc has agreed to the acquisition of the distribution rights to Diageo Plc’s international Premium Spirits (IPS) brands in Nigeria . . .
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 consideration for the transaction is approximately N2.35bn. The transaction is expected to be concluded by 31st December 2015 and the new distribution agreement for the IPS brands will become effective on 1st January 2016 subject to receiving all regulatory approvals.
In a statement, Peter Ndegwa, the Managing Director/CEO of Guinness Nigeria Plc said:
“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”
– Peter Ndegwa, MD/CEO Guinness Nigeria Plc