VBL Industries (Kenya) Limited (VBL Kenya), a wholly-owned subsidiary of Indian beverage producer Varun Beverages, has entered into a Business Transfer Agreement to acquire the value-added dairy beverages, juices and packaged drinking water business of Devyani Food Industries (Kenya) Limited (DFIL Kenya), an RJ Corp subsidiary
Under the terms of the agreement, VBL Kenya will pay a purchase consideration of $32 million to DFIL Kenya, which is a promoter group company. The transaction is expected to be completed on or before the 1st August.
The acquisition includes all assets associated with the business as a going concern, including a manufacturing facility located on a strategically located 52-acre land parcel in Nakuru, Kenya. According to the company, the transaction will enable VBL Kenya to deepen its penetration in Kenya and the broader East African region by leveraging DFIL Kenya’s manufacturing infrastructure and distribution capabilities. The company is also preparing to launch a carbonated soft drinks range.
Source: Varun Beverages
