Danone expands in east Africa

Danone expands in east Africa

Danone has purchased a stake in the holding company of Kenyan dairy group Brookside in a move it said would "significantly enhance" its reach in east Africa.

Rumours of Danone's interest in Brookside emerged at the start of the year.

The French group has paid EUR130m (US$175.8m) for a 40% stake in the dairy products firm, it announced today (18 July).

According to Danone, Brookside is east Africa's "leading" dairy group with a "unique" distribution platform that accesses over 200,000 outlets on a daily basis. Brookside's collection network includes 140,000 African dairy farmers.

"By uniting Danone's international expertise in Fresh Dairy Products with Brookside's regional expertise and robust supply chain, the partnership will enable Brookside's growth acceleration by expanding its product portfolio and strengthening its geographical presence in key markets in the east African region, including Uganda and Tanzania," Danone said.

Danone has been building its presence in Africa in recent months. Last October, it teamed up with The Abraaj Group, a private-equity firm focusing on emerging markets, to buy Fan Milk International, a dairy group operating in Africa.

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Danone partners with Brookside, 
East Africa's leading Dairy Products company 

Danone and Brookside's shareholders today announced an agreement allowing Danone to acquire a 40% interest in Brookside's holding company. 

With 2013 revenues of around €130 million, Brookside is East Africa's leading Dairy Products group. Established in Kenya in 1993, Brookside operates a unique distribution platform enabling a daily access to over 200,000 outlets. The company manages the largest milk collection network in East Africa, with 140,000 farmers in the region. 

By uniting Danone's international expertise in Fresh Dairy Products with Brookside's regional expertise and robust supply chain, the partnership will enable Brookside's growth acceleration by expanding its product portfolio and strengthening its geographical presence in key markets in the East African region, including Uganda and Tanzania. 

This partnership will significantly enhance the platform Danone is currently building in Africa. It is effective from today.

Original source: Danone