EABL (East African Breweries) is the largest beer business in east Africa with a strong presence in Kenya, Uganda and Tanzania and the transaction has reportedly generated $2.3bn in net proceeds.
Diageo has committed to enter into long term licensing agreements as well as transitional service agreements with EABL. Locally owned brands will remain owned by EABL and there will be refreshed agreements for EABL to produce certain Diageo spirits, RTD brands and Guinness under licence plus the import and distribution of other Diageo spirits.
Nik Jhangiani, interim CEO of Diageo, said: “EABL and Diageo have built the largest beer business in East Africa, a testament to driven people with a passion for the consumers and communities they serve.
“We remain committed to returning the group to well within our target leverage ratio range of 2.5 - 3.0x through disposals of non-strategic, non-core assets, alongside delivering positive operating leverage, and tighter capital discipline.”
In the fiscal year ended 30 June 2025, EABL reported net sales of $996m and net income of $94m, with net debt at $229m.
Atsushi Katsuki, president and CEO of Asahi, added: “This business is a high-quality, leading company in Kenya, Uganda, and Tanzania, with an unrivalled brand portfolio and marketing capabilities, state-of-the-art production facilities and strong market shares.
"Together with its excellent management team and employees, we will pursue sustainable growth and medium- to long-term enhancement of corporate value, while contributing to the development of the local economies.”
