Champion Breweries Plc, a subsidiary of enJOYcorp, says 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 (Sun Mark).
Champion Breweries says this is in line with its strategy to diversify into high-growth food and beverage categories.
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 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 subject to the receipt of the necessary regulatory approvals, including from the Federal Competition and Consumer Protection Commission (FCCPC).
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.
Champion Breweries Plc revenue hit N20.9 billion (USD14.1 million) in 2024, compared to N12.7 billion in 2023 due to higher volumes and upward price adjustments.
Champion Breweries Plc is majority owned by Raysun Nigeria Limited, a non-operational company. Champion Breweries operates on a much smaller scale with current installed production capacity at 500,000 hectolitres per annum (hlpa) compared to other peers that can produce more than 5 million hlpa.
Furthermore, the company has only two brands, and operations are all within the Southern region of Nigeria with around 60% of revenue generated from Akwa-Ibom state.
The company plans to ramp up capacity utilisation to 80% in 2025 (2024: 69%) and drive volumes to underpin further growth in revenue, estimated to hit N37 billion for 2025.
Champion Breweries stock is up 418% year-to-date and has a market capitalisation of N176.6 billion.
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