Heineken, a Dutch-based alcohol brewer will sell a 35 percent stake in its regional alcohol distribution business including Kenya to shareholders of Distell Group as part of its acquisition of the South Africa-based firm.
The Distell Group is South Africa and Africa’s leading producer and marketer of wines, spirits, ciders and other ready-to-drink (RTD) beverages, sold across the world.
With a diverse portfolio of brands with rich provenance and authenticity, Distell products are priced across the pricing continuum to cater to a broad spectrum of consumers.
Distell employs approximately 4, 400 people and have an annual turnover of R 26,1 billion.
Heineken distribution network will be transferred to Sunside Acquisitions Ltd
The Heineken distribution businesses in Tanzania, Uganda, Kenya, and South Sudan will be transferred to a South African subsidiary called Sunside Acquisitions Limited that will be jointly owned by Heineken and Distell.
Heineken, which currently fully owns the regional alcohol distribution businesses, will end up with a diluted but a controlling 65 percent stake in Sunside while Distell will hold the remaining 35 percent.
As part of the transactions, Distell will also bring its interests in its subsidiaries including Kenya Wine Agencies Limited (Kwal) to Sunside.
“The transaction will create a world-class, Southern-African-focused, alcoholic beverages entity (Newco) with a leading beer and cider portfolio, combining the complementary brands, talent, and skills of Distell, Heineken, and NBL, to better serve consumers across the region,” Distell said.
“Newco will also have a significant presence in adjacent African markets. Newco will benefit from strengthened route-to-market and scale that is expected to unlock revenue and cost synergies, which will improve its ability to grow and compete with the other players in the region.”
Distell’s product portfolio comprises spirits, wines, cider, whisky, and gin.
Heineken on the other hand is a specialist in premium beer and cider brands.
Heineken says the manufacturing and marketing of products imported into Kenya will be coordinated from South Africa once the deal with Distell is completed.
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