In its bid to diversify into high-growth food and beverage categories, Champion Breweries Plc, a Nigerian alcoholic beverage maker and subsidiary of enJOYcorp, on Wednesday said it has entered into an agreement for the acquisition of all brand assets and intellectual property of the Bullet range of ready-to-drink (RTD) alcoholic and energy beverages from Sun Mark International Limited.
Bullet is currently a leading RTD Brand in Nigeria, while the Bullet Blue energy drink ranks amongst the top six brands. Bullet RTD is also present in over 13 other African markets, including Cameroon, Ghana, Ivory Coast, DRC, and Tanzania.
The transaction, Champion Breweries said in a notice to the Nigerian Exchange, signed by David Butler, Chief Executive Officer of enJOYcorp, and Chief Tosan Atle Aiboni, the Company Secretary, “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 says it would 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.
The transaction is subject to the receipt of the necessary regulatory approvals, including Nigeria’s Federal Competition and Consumer Protection Commission (FCCPC).
Thereafter, Champion Breweries Plc says it will consolidate the financial performance of Bullet’s assets into its reporting, reflecting both immediate benefits (such as FX earnings, distributor leverage) and long-term cost synergies through integrated supply chain, portfolio expansion, operational integration, product development and enhanced market presence.
