French corporation opts to pay Kenyan billionaire Ksh1.8 billion to own his business

Image result for Societe BicBillionaire businessman Chris Kirubi has opted for the release of Haco Industries Kenya, which had the rights for over two decades from the parent company, ceding the business to the Societe Bic for €9.9 million (Sh1.1 billion), in addition to the initial €6.3 million (Sh718 million).

Haco Industries, one of Kenya’s largest consumer goods manufacturers, had agreements with several multinationals to manufacture and sell their brands in Kenya and East Africa. The company manufactures soaps, beauty lotions and pasta.

Kirubi’s HACO industries transfers ‘BIC’ brand to parent company

SOCIETE BIC will take over plant operations in Kasarani as well as the distribution of stationery, lighters and shavers in East Africa.

Haco Industries announced in August 2018 that it was relinquishing its manufacturing and distribution rights of BIC stationery and personal care products to Société BIC, the original owners of the brand. The Kenyan Competition Authority approved the transaction unconditionally on last October but the deal was finalized in January this year.

“This transaction is tangible proof of BIC’s confidence and belief in Kenya and the growth potential of the region. Until the completion of the transfer, BIC and HACO will continue to work together for the mutual benefit of all stakeholders and the respective businesses to achieve a smooth transition.”Dr. Chris Kirubi Chairman HACO Industries LtdImage result for Tiger Brands

The deal comes on the back of the buyout of a 51% stake last year by Dr. Kirubi from Johannesburg Tiger Brands over a disagreement over the company’s strategic direction

“We estimate the regional Stationery market to be around 1.5 billion units annually and growing mid to high single digit. With a strong focus on education, Kenya will be a driving force in the deployment of BIC’s “Writing the Future, Together” sustainable development program, which commits to improving the learning conditions of 250 million children globally, by 2025.” Gonzalve Bich CEO SOCIETE BIC

 

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