Johannesburg – Dutch brewer Heineken is a step closer to buying Distell, producers of popular alcoholic beverage brands Savanna and J.C. Le Roux.
The transaction will also see Heineken acquire Namibia Breweries Limited (NBL), producers of brands such as Windhoek Lager and Tafel Lager.
The deal is valued at just over R40 billion. Distel and NBL be combined with Heineken South Africa into a new Heineken majority-owned business with a total valuation of about €4 billion (R67 billion).
Distell which also produces 4th Street, Bernini and Hunter’s amongst other brands employs approximately 4 400 people and has an annual turnover of R26,1 billion.
Dolf van den Brink, CEO of Heineken, said the deal will create a regional beverage champion, perfectly positioned to capture significant growth opportunities in Southern Africa.
“Distell is a highly regarded, resilient business with leading brands, a talented workforce and a strong track record of innovation and growth in Africa. With NBL, there are exciting opportunities to expand premium beer and cider in Namibia and grow the iconic Windhoek brand beyond its home market. Together we will be able to better serve our consumers and customers through a unique combination of multi-category leading brands and a strengthened route-to-market. The businesses share common values derived from their family heritage, long-term perspectives, entrepreneurial spirit, and care for people and planet,” he said.
Distel CEO Richard Rushton, said the partnership has the potential to leverage the strength of Heineken’s global footprint to create a formidable, diverse beverage company for Africa.
“I am excited for what lies ahead as we look to combine our strong and popular brands and highly complementary geographical footprints to create a world class African company in the alcohol beverage sector. Our combined entity will grow our local expertise and insights to better serve consumers across the region,” he said
NBL Chairman, Sven Thieme, about the prospects of Namibia’s 100-year-old brewery being majority-owned by international beer brewer Heineken, Thieme says: “NBL is not leaving Namibia; in fact, it will remain a Namibian company listed on the NSX. NBL shareholders and stakeholders will enjoy all the benefits of being part of a global beer business with world class systems, synergies and route to market. Just imagine the opportunities for brands born and bred in Namibia, when they have access to global platforms that come with being part of a trusted international company like Heineken.”
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