NSE-listed Flame Tree to acquire cosmetics company

What you need to know:

Flame Tree Group has signed an acquisition agreement for an undisclosed amount and the deal is awaiting approval by the Competition Authority of Kenya.

Listed consumer goods manufacturer Flame Tree Group is set to acquire local cosmetics firm Suzie Beauty. The group has signed an acquisition agreement for an undisclosed amount and the deal is awaiting approval by the Competition Authority of Kenya.

Flame Tree manufactures Zoe lotion and Roto tanks and has been on an acquisition spree since listing.

“We believe that it will help in our strategy to diversify and build a portfolio of premium-positioned niche cosmetic care brands,” said George Theobold, chairman of the Flame Tree Group.

Founder Suzie Wokabi said the link-up would help grow the brands by broadening the reach.

The cosmetic company founded in 2009 offers a range of facial cosmetics including foundation, concealer, eye-shadow and liner, mascara, lip-gloss, blush, lipstick, powder and a full line of applicator brushes.

Ms Wokabi is set to be retained as the new chief creative director and brand ambassador.

According to Flame Tree Group, the colour cosmetics market is worth approximately Sh5.4 billion and is expected to grow to Sh6.6 billion by 2018.

The company similarly did not disclose the acquisition cost, but said the deal was financed through internal cash reserves.