, NAIROBI, Kenya Mar 12 – Flame Tree Group is set to acquire four food and snack brands from Chirag Kenya.
The brands include; Natures Own (spices), Chigs (potato crisps), Honeycomb (biscuits) and Gonuts (nuts)
This brand portfolio had annual turnover of Sh90 million for 2014 and is distributed through leading convenience and retail channels.
As well as the four brands, Flame Tree Group will acquire the company’s 60 employees and the Nairobi-based factory and distribution assets.
The acquisition is expected to be complete in the coming months, subject to regulatory approvals and ratification by the board.
According to the management, the acquisition will increase scale – and scope for efficiencies – in Flame Tree Group’s food business.
“The acquisition provides Flame Tree Group an established platform for growth in the food space. It is also in line with our strategy of creating a diversified FMCG business – manufacturing across Africa and building a portfolio of much-loved African brands,” said Flame Tree Group Chief Executive Officer Heril Bangera.
Bangera said the addition of the new brands and assets will more than double the size of the Flame Tree Group food portfolio, enabling cross-promotional opportunities across complementary brands in crisps, biscuits, nuts, and spices.
“From a financial perspective, we believe this is a highly earnings accretive acquisition. From a strategic perspective we are delighted to add new brands to our food and snack portfolio, which already includes Happy’s. I am particularly excited about our entry into the spices category with Nature’s Own spices. This is a well-loved brand in Kenya and has been a common feature in my spice cupboard for the past 25 years, ” he added.
The company operate in cosmetics, plastics, food and trading, with a brand portfolio that includes Roto Tanks, Jojo Plastics, Zoe, Cerro, Alana Skin, Siora, Happy’s and Buildmart.
Founded in 1989, the company listed on the GEMS segment of the Nairobi Securities Exchange(NSE) last year and employs over 1, 000 people with operations in Kenya, Rwanda, Ethiopia, Mauritius, Mozambique and Dubai.