UAC sells 73% Livestock Feeds stake to Sunbeth

NIGERIA – UAC of Nigeria Plc (UAC) has agreed to sell its 73.29% controlling stake in Livestock Feeds Plc to Sunbeth Treenuts and Sesame Limited for ₦19.5 billion (US$15 million), marking its exit from the animal feed producer after more than a decade of ownership.

The transaction, priced at ₦8.85 (US$0.0067) per Livestock Feeds share, is subject to applicable regulatory approvals and other conditions.

UAC acquired control of Livestock Feeds in 2013. 

Established in 1963, the company manufactures and distributes animal feed and feed concentrates for poultry, aquaculture and livestock markets.

Livestock Feeds operates production facilities in Ikeja, Aba and Kano and has a nationwide distribution network.

UAC said Livestock Feeds’ revenue increased fivefold and profitability increased 18-fold during its ownership, alongside expansion of the company’s production capacity and distribution footprint.

The acquisition will bring Livestock Feeds into Sunbeth’s broader African agribusiness platform, which operates across agricultural sourcing, producer networks, warehousing, supply-chain management, trading and processing.

Sunbeth said it plans to combine its origination and processing capabilities with Livestock Feeds’ manufacturing footprint, brands, technical expertise and nationwide distribution network.

“Our immediate priority will be to work with the existing management team and employees to strengthen the business,” said Jeroen de Ruijter, chief financial officer of Sunbeth Agro HoldCo.

The company said it will focus on strengthening operational efficiency, supply-chain resilience and product quality while supporting Livestock Feeds’ next phase of growth.

The transaction follows UAC’s September 24 announcement of an agreement to sell its 43% interest in DP World Logistics Limited, formerly MDS Logistics, to 22 Plus Invest Limited, a member of TGI Group. 

Financial terms for that transaction were not disclosed.

The Livestock Feeds sale is the second major divestment UAC announced within a week as the group continues to reshape its portfolio.

Banwo & Ighodalo advised UAC on the transaction. FigPartners Africa and CardinalStone Partners advised Sunbeth, while Olaniwun Ajayi LP advised on legal matters.

Completion of the Livestock Feeds transaction remains subject to applicable regulatory approvals.

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