KENYA – Flame Tree Group has completed the acquisition of four brands of a snacks and spices manufacturer Chirag Kenya, a move it expects to boost its earnings in the coming years.
The Nairobi Securities Exchange-listed firm made the disclosure in its trading update ahead of the publication of its half year results late next month.
“Following the approval from the Competition Authority, Flame Tree Group has completed its acquisition of Chirag brands namely: Nature’s Own (spices and herbs), Chigs (crisps), Honeycomb (chevda and biscuits) and Gonuts (nuts),” the firm said in a statement.
“These brands have been integrated successfully into FTG through the newly formed company Chirag Africa Ltd, with the synergies expected to be realised over the short to medium term.”
The acquired brands recorded a total turnover of Sh90 million last year.
The company did not disclose the acquisition cost, but said the deal was financed through internal cash reserves.
With the acquisition, Flame Tree also aims to get a bigger share of the breakfast cereals market as it diversifies its operations.
The company said it has also upgraded the packaging of its Siora hair brands, Happys food brands, and has introduced a number of variants to its Zoe Hair Care range.
Flame Tree, which listed on the NSE last year, manufactures plastic water tanks, mobile toilets and Zoe body lotion.
July 23, 2015; http://www.businessdailyafrica.com/Corporate-News/Flame-Tree-seals-spices-buyout/-/539550/2803254/-/xwqh1gz/-/index.html