Netherlands-based brewer Heineken has acquired controlling stakes in five Nigerian breweries in a bid to expand is footprint in the burgeoning country.
Heineken acquired the stakes from Sona Group through a competitive auction process. The acquirer is estimated to have paid almost EUR 600 million for the deal, based on an EBITDA multiple of 7 times.
The breweries will provide Heineken with an additional 3.7 million hectoliters of capacity, giving it a total capacity of about 16 million hectoliters.
Heineken estimates that the total size of the Nigerian beer market was 16.5 million hectoliters in 2009.
Nigeria has a population of about 150 million and with the beer market having an annual growth of 9% over the last 10 years, according to Heineken.