Danone eyes Kenya’s Brookside Dairy
This comes a few months after the international dairy giant’s acquisition of 49% of the West Africa’S Fan Milk group.
Firmly established in North and Southern Africa, the French group NOW plans to acquire shares at Kenya’s Brookside Dairy.
In a bid to increase its presence in Sub-Saharan Africa, the French group is seeking to acquire minority shares owned by Abraaj ( its partner) at Brookside Dairy, our sister publication Jeune Afrique has revealed.
Founded in the early 90s and mostly controlled by President Uhuru Kenyatta’s family, Brookside Dairy buys an average of 500,000 litres of milk per day from some 125,000 Kenyan farmers.
The east African diary giant also operates in Tanzania and Uganda, and exports its products to several African countries.
Abraaj is a longtime partner of Brookside Dairy, where it has had investmentsvia Acacia Fund and Aureos Africa Fund since 1998 .
In 2009, Abraaj injected approximately $ 18.7 million in Brookside through Aureos for a minority shareholding.
This shareholding, now up for grabs, is being coveted by Danone and another company.
This is not the first time Danone and Abraaj have collaborated in Africa.
Shortly after acquiring the entire capital of the West African diary and juices giant, Fan Milk, in mid-2013, Abraaj merged with Danone ahead of an eventual take-over.
Abraaj is expected to give up control of its 51% stake of Fan Milk to Danone.
With 60% of Danone’s €20 billion turnover (2012) generated outside Europe, Africa has become one of the French giant’s priorities in terms of development.