In a landmark deal that has captured the attention of Nigeria’s business community, UAC Nigeria has acquired CHI Limited in a N182.4 billion transaction, making it the largest merger and acquisition in the country’s consumer goods sector. The acquisition underscores UAC’s ambition to expand its market influence and establish itself as a leading player in Nigeria’s food and beverage industry.
The merger is set to dramatically boost UAC Nigeria’s 2025 revenue, with projections showing a combined figure of about N615 billion. Individually, UAC Foods is expected to contribute N79 billion, while CHI Limited accounts for N536 billion. In the first nine months of 2025, the expanded group’s topline reached N717 billion, reflecting the transformative scale of integrating CHI into the UAC ecosystem. EBITDA also surged to N67 billion, a 2.7-fold increase from the N25 billion recorded prior to the acquisition.
Funding for the acquisition came through a mix of cash reserves and debt. UACN deployed N30.8 billion from its cash reserves, while the remaining N151.6 billion was financed via a USD-denominated bridge loan, priced at SOFR plus 5.5 percent. UACN has hedged the currency risk entirely and plans to refinance the loan through bond issuances and term loans starting late 2025 or early 2026, ensuring the transaction remains financially sustainable.
Beyond the numbers, the operational scale of CHI is remarkable. The company employs 1,590 full-time staff and 3,444 contract workers, significantly expanding UACN’s workforce of 1,367 employees at the end of 2024. Net working capital is projected to reach N181 billion by year-end, a 341.5 percent increase from 2024, highlighting the strengthened financial position of the newly combined entity.
The acquisition brings together UAC’s iconic brands, including Gala, SWAN Water, Mr Biggs, Sandtex, and Dulux, with CHI’s Hollandia, Caprisun, and Chivita brands. While CHI will remain a standalone entity under UAC Food and Beverage Company Limited (UFB) for now, the merger creates a consumer goods powerhouse with over 26 leading brands, positioning UAC Nigeria to dominate the market in the coming years.
source: Business day