PARIS — Groupe Danone S.A. has agreed to acquire a 40% stake in Kenyan dairy company Brookside Dairy Ltd., paving the way for the Paris-based company to expand its footprint in Africa.
Founded in 1993, Brookside is the largest milk collector in East Africa with 140,000 farmers in the region. Its products include fresh and UHT milk, powdered milk, yogurt, fermented milk, ghee and butter. The company had 2013 revenues of approximately €130 million ($175.7 million).
“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. “This partnership will significantly enhance the platform Danone is currently building in Africa.”Danone has invested more than $1.35 billion in Africa over the past two years, and last year the company acquired a 49% stake in Fan Milk International, West Africa’s largest maker of frozen dairy goods. Danone also acquired a controlling stake in Moroccan group Central Laitière.