NAIROBI, Kenya Dec 17- Olympia Capital Holdings Limited has announced the acquisition of the Yokota brand name and the manufacturing plant belonging to Natural Wooden Products Limited from the liquidators of Plush Products in South Africa.
The acquisition was made through Olympia Capital Corporation, their Botswana listed subsidiary.
The deal is part of Olympia’s new business as it seeks to increase its presence in the South African market.
While confirming the new development, Olympia Capital Holdings Chief Executive Michael Matu said the company, had in 2006, acquired a 74 percent stake in Plush Products as part of the regional expansion strategy.
Plush Products manufactured and distributed curtain tracking and related products sold under the Yokota brand. Olympia Capital Corporation then purchased Natural Wood Products limited in mid 2008 to enter the manufactured wooden lifestyle products market.
Mr Matu explained that the decision to take over the Yokota branded products and the Natural Wooden Products manufacturing plant was informed by the huge market potential in the region.
“We see ourselves best placed to continue leveraging the popularity of the products in the South African market and export potential of the Natwood products as we seek to realise gains from our regional expansion strategy,” he said.
He expects the two new business units to contribute positively to the bottom line of the group in the 2010/2011 financial year, which begins on 1st March 2010.
The new business model involves operating the two businesses with minimal debt, a leaner staffing structure and lower overheads, with a specific plan to avoid the large retail market in South Africa, where it is difficult to manage margins.
Both businesses, operating as Yokota SA and Natwood Africa have commenced operations.
Olympia Capital Holdings owns 100 percent shares in Dunlop Industries Limited (Kenya), a 49 percent stake in Avon Rubber Limited (Kenya), 13 percent stake of Heri Limited (Kenya), and 53 percent shares in Olympia Capital Corporation.
Olympia Capital Corporation holds 100 percent shares in Kalahari Floor Tiles (Botswana), which owns Gaborone Enterprises Limited.