Water tanks and fast-moving consumer goods manufacturer Flame Tree Group has announced the acquisition of Chirag Kenya brands in a transaction that awaits regulatory approvals.
Chirag Kenya makes spices and snacks branded Nature’s Own (spices), Chigs potato crisps, Honeycomb biscuits and Gonuts. It had a turnover of Sh90 million in 2014.
Flame Tree which also manufacturers Roto Tanks did not immediately disclose the value of the transaction.
“We prefer to keep that confidential for now,” chief executive Heril Bangera told the Star on phone yesterday.
FTG will continue manufacturing the brands under Chirag Africa, a newly formed entity. The firm said it will absorb Chirag Kenya’s 60 employees under the deal and take over the factory and distribution channels.
FTG, which is newly listed on the Nairobi Securities Exchange’s GEMS, said the acquisition will be completed in the coming months once all approvals are granted.
The firm already has a food processing line, Happy Eaters Kenya Ltd, which produces the Happy’s Golden range of potato crisps and nuts.
“The acquisition will increase scale – and scope for efficiencies – in Flame Tree Group’s food business,” it said in a statement.
Bangera, who said he has been using the Nature’s Own spices for 25 years, said there is a “future possibility” of consolidating the operations of Chirag Africa and Happy Eaters.
“Eventually we might, but what we will get immediately are the skills and additional brands that will give our customers choice in the retail shelves,” he said on phone.
“Spices will be a new segment for us.”
FTG’s product portfolio includes Roto Tanks, Zoe cosmetics line, Jojo Plastics, and Buildmart. It operates in Kenya, Rwanda, Ethiopia, Mauritius, Mozambique and Dubai in the UAE.