Varun Beverages Limited has announced the acquisition of 100% equity stake in South Africa-based Crickley Dairy Proprietary Limited as part of its strategy to diversify its product portfolio into new categories, including value-added dairy and juice-based beverages.
The acquisition will be carried out through its subsidiary, The Beverage Company Proprietary Limited (Bevco), which operates in South Africa. Bevco will acquire Crickley from Clark Holdings Proprietary Limited for an enterprise value of ZAR 238 million, which translates to approximately ₹131.46 crore. The transaction is subject to regulatory approvals, including those from the Competition Commission of South Africa.
The company stated that the acquisition aligns with its long-term strategy of expanding beyond carbonated beverages and strengthening its presence in adjacent categories. By entering the dairy and juice-based segments, Varun Beverages aims to tap into evolving consumer preferences and broaden its product offerings in the African market.
Crickley Dairy is not related to the promoter or promoter group of Varun Beverages, and the transaction does not qualify as a related party transaction. The company also clarified that there are no shareholding overlaps between the entities involved prior to the agreement.
The deal is expected to enhance Varun Beverages’ portfolio diversification and provide a new growth avenue in international markets, particularly in South Africa, where it already has an established presence through Bevco.
Disclaimer: This article is based strictly on the provided exchange filing and does not include any additional assumptions. It does not constitute investment advice.