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.
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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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