NAIROBI, Kenya – Diageo has announced an agreement to sell its 65% stake in East African Breweries Limited (EABL) and its shareholding in Kenyan spirits producer UDVK to Japan’s Asahi Group Holdings, Ltd.
The transaction, valued at an estimated $2.3 billion net of taxes and transaction costs, reflects a multiple of 17 times adjusted EBITDA, implying a total enterprise value for EABL of $4.8 billion.
The sale is part of Diageo’s strategy to divest non-core assets, strengthen its balance sheet, and reduce leverage by approximately 0.25x.
Nik Jhangiani, Interim CEO of Diageo, said the deal underscores the company’s pride in EABL’s century-long heritage and its leading presence across Kenya, Uganda, and Tanzania.
“EABL and Diageo have built the largest beer business in East Africa, a testament to our dedicated people and their commitment to consumers and communities,” he said.
Asahi, a global leader in beverages, will maintain EABL’s locally loved brands, including Tusker and Kenya Cane, while introducing internationally recognized names to the East African market.
The agreement also includes long-term licensing and transitional service arrangements, allowing EABL to continue producing Diageo spirits such as Smirnoff, Captain Morgan, Guinness, and ready-to-drink brands like Smirnoff Ice and Orijin.
Atsushi Katsuki, President and CEO of Asahi, described EABL as a high-quality business with strong market shares, state-of-the-art facilities, and a seasoned management team.
“We are excited to support the next phase of growth for EABL in Kenya, Uganda, and Tanzania,” he said.
The deal is expected to close in the second half of 2026, subject to regulatory approvals, marking the first time a major Japanese brewer has made an investment of this scale in Africa’s alcohol beverage sector.
