SOUTH AFRICAAfrica’s leading spirits and wines operator Distell has completed the acquisition of an initial 26% of the ordinary shares of Best Global Brands Limited for US$54.6 million, a leading spirits producer in Angola and Nigeria.

The deal, which also provides Distell with the option to take the remaining 74% shareholding held by the Furlong and Octane Trusts, no earlier than the end of 2019 adds a significant and fast growing line of products to Distell, as it moves to consolidate its operations in Africa.

Best Global Brands is the holding company of a group of companies which own, manufacture and distribute the fast growing mainstream “Best” spirit brand in a number of countries in Africa.

It is the market leader in the mainstream spirits category in Angola and is the leading mainstream cream spirits brand in Nigeria.

The brand is experiencing strong growth in various other African countries most notably Kenya and Zambia.

The brand achieved volumes in excess of 30 million litres for the twelve months ending 30 June 2017 with Best whisky and Best Cream comprising the largest proportion of those volumes.

It operates production facilities in Angola and Nigeria which provide a competitive advantage in both cost of production and speed to market, says Distell, underpinned by established routes-to-market in these countries.

According to Distell, the acquisition of the strategic interest in the company will enable the Distell group to advance its strategy of becoming the leading spirits, wine and ready-to-drink (RTD) group across Africa, by providing scale and efficiency in the spirits category.

In the deal, Distell has acquired 26% of the company for an upfront purchase worth US$54.6 million.

A further deferred purchase consideration worth US$15.2 million is due should Best Global’s Angolan operations obtain an import duty waiver on the importation of raw materials into Angola within a period of 12 months from closing.

Once certain operating hurdles are achieved and conditions precedent to closing are fulfilled or waived, Distell will take up the remaining 74% ordinary shares of the company.

Distell will appoint two directors to the board of BGB, one of which being the finance director to Best Global as part of the deal. 

June 28, 2017