India-based PepsiCo bottler Varun Beverages has struck another deal in Africa, agreeing to buy Kenya-based DFIL Kenya.
In a stock-exchange filing, Varun Beverages said the deal comprises Devyani Food Industries (Kenya) Limited's "value-added dairy beverages, juices and packaged drinking water business as a going concern".
The purchase includes a manufacturing facility “strategically located” on a national highway in Nakuruin south-west Kenya.
Varun Beverages said it would pay Rs3.05bn ($32m) for DFIL Kenya, which it described as "a promoter group company". Just Food has asked Varun Beverages to outline the relationship between the businesses. The filing said the deal had been "done at arm's length basis".
In the filing, Varun Beverages said the acquisition would help the company to “deepen its penetration” in Kenya and broader east Africa.
It will also support the company’s plans to launch a carbonated soft drinks range in Kenya, the group added.
The move follows a string of acquisitions by Varun Beverages in Africa.
In March, the company signed a deal to buy South Africa’s Crickley Dairy from Clark Holdings, which produces dairy products and soft drinks.
The business also snapped up South Africa-based soft-drinks maker Twizza last December.
Varun Beverages makes, distributes and sells PepsiCo-owned drinks across carbonated and non-carbonated categories, including packaged water.
In May, Varun Beverages secured a ten-year extension of its exclusive bottling and trademark licence deal with PepsiCo in India.
The revised deal extended the licence to 30 April 2049 from its original 2039 timeline.
The revision also removed a restrictive clause that prevented Varun Beverages from pursuing non-PepsiCo operations.


