MEDIA RELEASE
16 MAY 2023
RMB acts as financial adviser to Distell in transaction with Heineken & Namibia Breweries
In one of the largest foreign direct investments into South Africa in recent years, the acquisition by Heineken International B.V. (Heineken) of the cider, ready-to-drink, spirits, and wine assets of Distell Group Holdings Limited (Distell) has completed today, in an overall transaction valued at c. R40.1 billion.
As part of the transaction, Heineken South Africa, Distell and a majority interest in Namibia Breweries will be combined under a new South African headquartered holding company. The establishment of this significantly enlarged business will create a regional champion in the African beverage sector, well-positioned to capture significant growth opportunities in Southern Africa.
Throughout the process of this landmark complex cross border transaction, which was announced in November 2021 and finally approved by the Competition Tribunal in March 2023, RMB has played an important role as financial adviser, sponsor and transaction sponsor, and corporate broker to Distell.
“This transaction not only delivers a significant and much needed foreign direct investment into South Africa, but also serves as a strong vote of confidence in the country and region. The successful completion of the transaction is the culmination of a long journey. As RMB we are proud to have partnered our long-time client Distell to navigate the many challenges arising from the multi-jurisdictional complexity of the transaction, the restructuring of the group to enable the acquisition, and the three-way combination of businesses that was a feature of the transaction. We are pleased for Distell and its shareholders that the transaction has finally concluded, not least because it was negotiated and completed through a period of significant Covid-19 related disruption,” said Ferdi Vorster, Investment Banking Director at RMB.
Distell owns and represents numerous well-known alcoholic beverage brands in South Africa, including Savanna, Hunters Dry, Amarula, 4th Street, Klipdrift, Nederburg and JC le Roux. It is the world’s second largest cider producer, and its wine is sold on every continent. Through the transaction, Heineken has strengthened its position in Southern Africa, and is now able to offer a unique multi-category portfolio to its customers across the region.
With the acquisition of an outright controlling stake in Namibia’s beer market leader, Heineken will further augment the offering of the enlarged business in Southern Africa and select markets in East Africa. The combined business will naturally benefit from Heineken’s global leadership, best practices and international capabilities, enabling them to better serve customers.
Commenting on RMB’s role in relation to the transaction, Richard Rushton, Distell CEO, said: “RMB has played an important role in advising Distell on achieving a successful outcome in respect of this complex and multi-faceted transaction with Heineken and NBL. I believe that this deal will deliver significant benefits for all of Distell’s stakeholders and will result in a uniquely positioned business poised for further growth in the region. Alongside the many individuals at Distell who have contributed to this outcome, I am grateful for the exceptional advice and support from the wider RMB team throughout the negotiation and implementation of this transaction. This was again testament to why we have partnered RMB in our business for so many years.”
RMB acted as financial adviser, sponsor, transaction sponsor, as well as corporate broker to Distell Group Holdings Ltd in relation to Heineken International BV’s offer to acquire Distell.
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Contact:
Kate Kelly l RMB l kate.kelly@rmb.co.za
