Kenyatta family sells stake in dairy firm Brookside
18 July 2014, 10:45
Nairobi - French food group Danone
said on Friday it was buying a 40 percent stake in
Brookside, East Africa's top dairy producer, as part of plans to
expand in new markets amid weak growth in Europe and a slowing economy in China.
The deal, whose financial terms were not disclosed, was
sealed with the controlling Kenyatta family, and will boost
Danone's earnings, Emmanuel Marchant, vice-president for
corporate development, told Reuters by phone.
Africa has in recent years become a major area of expansion
for Danone and other global consumer companies such as Unilever, Nestle, Pernod Ricard and Diageo
, attracted by the spending power of the growing middle
"Africa is an important new frontier for Danone for years to
come...We can grow organically but also through acquisitions...
We continue to look for nice opportunities," Marchant said.
The deal with Brookside, which had 2013 sales of around 130
million euros ($175.8 million) and has a share of about 40
percent of the Kenyan dairy market, gives Danone access to the
largest milk collection network in East Africa with over 140,000
farmers and a distribution network of more than 200,000 outlets.
Founded in 1993 in Kenya, Brookside, which also exports to
Uganda and Tanzania, has a portfolio spanning from fresh to
powdered milk, yoghurt and butter.
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