Beverage company Diageo has agreed to sell its Guinness Cameroon brewery to France's Castel Group for £389 million (€458.6 million), the company said in a statement.
Castel will take over the production and nationwide distribution of Guinness in Cameroon under a licence and royalty agreement, it said.
Dayalan Nayager, president of Diageo Africa, said, “Guinness has outgrown its existing brewery in Douala as a result of its strong performance. Under this new agreement, the brand will have both expanded brewing capacity and distribution.
“It will remain part of the global Guinness family through direct marketing oversight. We look forward to unlocking even greater potential through this agreement with Castel, ensuring we continue to have great tasting Guinness across Cameroon.”
The deal is expected to be completed in the first half of fiscal 2023, subject to regulatory clearances.
When completed, the transaction will result in an exceptional gain on disposal of approximately £250 million (€294.7 million) after tax, Diageo noted.
'A New Milestone'
Gil Martignac of Castel, stated, “The planned acquisition of Guinness Cameroon marks a new milestone in its development, both in Africa and in Cameroon where it has been recognised as an economic player for many years through SABC.
“This acquisition expands the company's portfolio in the strategic stout market and strengthens its historical partnership with Diageo in many other markets. Guided by its entrepreneurial spirit, Castel continues its growth momentum and its commitment to promoting the economic and social vitality of Cameroon and the African continent.”
Elsewhere, Diageo has teamed up with The Vita Coco Company to launch a line of premium canned cocktails crafted by blending Captain Morgan rum and coconut water.
News by Reuters, additional reporting by ESM. For more drinks news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.