World biggest yoghurt business, Danone is set to acquire 40 percent of Brookside Dairy Limited, East Africa’s largest milk company, to expand its reach in Africa and gain a strong foothold in Kenya, one of Africa’s largest milk markets.
The stake will give Danone access to over 140,000 milk farms across the East African region where it will collect and processes 750,000 litres of milk per day. Brookside enjoys the position as a market leader with an annual revenue of $176 million in 2013.
Danone Vice-president for corporate development, Emmanuel Marchant said the Paris-based yogurt maker’s deal with Brookside is important for its development in Africa, even as it look to grow through acquisitions or by organically developing existing brands in new markets.
Danone’s latest bid to enter Kenya is one of its many investments in Africa where it has invested over $1.35 billion in the last two years. Last year, the company bought 49 percent stake in Fan Milk International, a frozen dairy products and juices maker in West Africa and a controlling stake in Moroccan group Central Laitière for 550 million euros.
If the deal is successful, Danone hopes to help Brookside expand its product range and possibly expand its product into other markets. (VENTURES AFRICA)