Emmanuel Ukudolo
December 24, 2015 – Guinness Nigeria Plc (“GN”) has acquired 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 31 December 2015 and the new distribution agreement for the IPS brands will become effective on 1 January 2016 subject to receiving all regulatory approvals.
Commenting on the development, Managing Director/CEO of Guinness Nigeria Plc, Mr. Peter Ndegwa, the transaction will facilitate the achievement of its ambition to create the best performing, most trusted and respected consumer products company in Nigeria by leveraging the strength of its 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”, he said.
