Champion Breweries Plc (NGX: CHAMPION) has announced an agreement for the acquisition of all brand assets and intellectual property of the Bullet range of ready-to-drink alcoholic and energy beverages from Sun Mark International Limited.
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The subsidiary of EnjoyCorp disclosed the acquisition which is in line with its strategy to diversify into high-growth food and beverages categories in regulatory filing on Wednesday.
Bullet is currently present in over 14 African markets, including Nigeria, Cameroon, Ghana, Ivory Coast, DRC, and Tanzania. The Bullet Black RTD is currently the leading RTD Brand in Nigeria while the Bullet Blue energy drink ranks amongst the top six brands.
The transaction is structured as an asset carve-out, with the assets to be held in a newly incorporated company in the Netherlands. Post-acquisition, Champion Breweries Plc will hold a majority interest in the new business, while Vinar N.V, a Belgian entity and the majority shareholders of Sun Mark, will hold a minority stake. Bullet range of ready-to-drink alcoholic and energy beverages are manufactured in Belgium.
Following completion of the acquisition, Champion Breweries Plc will consolidate the financial performance of Bullet’s assets into its reporting, reflecting both immediate benefits (e.g. FX earnings, distributor leverage) and long-term cost synergies through integrated supply chain, portfolio expansion, operational integration, product development and enhanced market presence.
The transaction is subject to the receipt of the necessary regulatory approvals, including from the Federal Competition and Consumer Protection Commission (FCCPC).
Shareholders of Champion Breweries Plc had at an Extra-ordinary General Meeting of the Company held on Thursday 24th July, authorized the company to undertake an acquisition transaction whether by way of acquisition of shares of a going concern or through the acquisition of equity interest in a special purpose vehicle that holds intellectual property rights and brand assets.
Champion Breweries Plc was incorporated in Nigeria as a limited liability company on 31 July 1974 and was later converted to a public limited liability company on 1 September 1992. The address of the Company’s registered office is Industrial Layout, Aka Uffot, Uyo, Akwa Ibom State, Nigeria.
The Company is involved in the brewing and marketing of Champion Lager Beer and Champ Malta. The Company also provides contract brewing and packaging services to Nigerian Breweries Plc. The Ultimate parent Company of Champion Breweries Plc is EnjoyCorp. The immediate parent Company is The Raysun Nigeria Limited, a subsidiary of enJOYcorp.
Investogist in February 2024 reported that EnjoyCorp acquired Heineken B.V’s 100% stake in 49 years old Champions Breweries Plc.
EnjoyCorp Limited is a holding company established for food, beverage and hospitality brands.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur
