The Board of Directors of East African Brewers PLC (EABL) has announced that Diageo PLC has agreed to sell a majority stake in EABL and a stake in Kenyan spirits business UDV (Kenya) Limited to Asahi Group Holdings (Asahi).
The acquisition of EABL marks the first time that a major Japanese beer company has made an investment of this magnitude in an African alcoholic beverages business.
Under the terms of the transaction, Asahi will become majority owner of one of East Africa’s leading operations and will assume control of all operations in Kenya, Uganda and Tanzania.
Asahi will introduce globally recognized brands from its portfolio to East African consumers, while maintaining beloved local brands.
The transaction has estimated net proceeds of $2.3 billion (approximately Shs 296.5 billion) after taxes and transaction costs, representing 17 times adjusted EBITDA and an implied enterprise value of $4.8 billion (approximately Shs 619 billion) at 100% EABL.
This transaction is a sign of strong confidence in EABL and the East African region’s long-term growth prospects, supported by strong demographic and economic prospects, and the esteemed listed company will continue to thrive under its new ownership.
Building on our strong legacy, EABL looks forward to a new chapter of growth with Asahi in the dynamic and rapidly evolving beverage market within East Africa.
Asahi’s businesses will benefit from EABL’s state-of-the-art production facilities, experienced board and management team, strong brand portfolio, strong consumer channels, and good relationships with employees, local partners, and customers.
Jane Kalk, MD and CEO of EABL, added: “This acquisition is an important step in accelerating our growth ambitions to become Africa’s most recognized beverage business.
The new majority owners bring significant knowledge and expertise in innovation and growing successful brands around the world, helping us achieve our ambitions. ”
Nick Giangiani, interim CEO of Diageo, said:
EABL and Diageo have built East Africa’s largest beer business. This is a testament to the dedication of people who are passionate about consumers and their communities. We are very pleased to be able to partner with Asahi in the future through the licensing of Diageo brands in this region.
The transaction creates significant value for Diageo shareholders and accelerates the company’s efforts to strengthen its balance sheet, returning the group well within its target leverage ratio of 2.5x to 3.0x through the disposal of non-strategic non-core assets, delivering positive operating leverage and enhanced capital discipline.
This disposition, along with USL’s recent announcement to conduct a strategic review of RCB’s ownership, is an important step towards fulfilling this commitment. ”
Atsushi Katsuki, Director, Representative Executive Officer, President and Group CEO of Asahi, added: “The business is a leading quality company in Kenya, Uganda and Tanzania with an unparalleled brand portfolio and marketing capabilities, state-of-the-art production facilities and strong market share.”
Together with our excellent management team and employees, we will pursue sustainable growth and increase medium- to long-term corporate value, and contribute to the development of the local economy. ”
The transaction is subject to regulatory approvals from relevant government agencies and is expected to close in calendar year 2026.
No changes are expected to be made to the operations of EABL PLC and its subsidiaries, and this transaction will have no impact on their operations.
In the meantime, Diageo will continue to support Asahi to ensure a smooth transition and successful business transfer.
