Danone acquires 40% stake in Kenya's Brookside Dairy for undisclosed price to expand its presence in Africa
July 18, 2014
– Danone, the world’s biggest yogurt maker, said it acquired 40 percent of Brookside Dairy Ltd. in Kenya to expand its presence in Africa after buying a stake in a Ghanaian milk producer nine months ago.
The purchase, for an undisclosed sum, will enable Brookside to expand its product portfolio and its presence in Uganda and Tanzania, the Paris-based company said in an e-mailed statement. In October, Danone partnered with Dubai-based private equity firm Abraaj Group to acquire Fan Milk International of Ghana.
“The partnership will significantly enhance the platform Danone is currently building in Africa,” the company said.
Brookside is East Africa’s biggest dairy manufacturer, with annual revenue estimated at about 130 million euros ($176 million), according to the statement. The company also manages the largest milk-collection network in East Africa that is supported by more than 140,000 farmers. Brookside Executive Chairman Muhoho Kenyatta is the younger brother of Kenyan President Uhuru Kenyatta.
Brookside spokesman Wilson Ogot declined to comment when contacted today by Bloomberg.
Danone, with 190 production plants around the world, posted sales of more than 21 billion euros last year.
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