Roto tanks maker Flame Tree to acquire cosmetics firm Suzie
Flame Tree Group managing director Heril Bangera (left) with Suzie Beauty founder Suzie Wokabi during the signing of the acquisition deal. PHOTO | DIANA NGILA
What you need to know:
Flame Tree Group has signed an acquisition agreement for an undisclosed amount and the deal now awaits approval by the Competition Authority of Kenya.
Suzie will be the third acquisition by Flame Tree since it was listed in November 2014. It acquired Miss Africa, Black Angel and Beautyplus hair brands from Beauty Plus Trading East Africa.
The listed company also bought the Monalisa skincare brand.
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 now awaits 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 firm’s annual report for 2014 says the cosmetics division, under the manufacturing arm, accounted for 74 per cent of its portfolio. The trading arm accounted for the remaining 26 per cent.
Suzie will be the third acquisition by Flame Tree since it was listed in November 2014. It acquired Miss Africa, Black Angel and Beautyplus hair brands from Beauty Plus Trading East Africa. The listed company also bought the Monalisa skincare brand.
Early last year, the group also took ownership of Chirag Kenya’s four brands and 60 employees in a bid to grow its revenue base.
Chirag, a snacks and spices marketer, was said to have had a turnover of Sh90 million last year indicating a strong potential to boost the company’s top line.
Its four brands include Natures Own, Chigs potato crisps, Honeycomb biscuits and Gonuts.
The company similarly did not disclose the acquisition cost, but said the deal was financed through internal cash reserves.
Heril Bangera started Flame Tree Group in 1989 while aged 18 under the name Roto Moulders Ltd while pursuing a mechanical engineering degree from Bangalore University in India. He depended on his father Fredrick Bangera to manage it until he graduated in 1991.
In 2003, Roto grew to Flame Tree Group, a diversified company making household products such as Roto Tanks and Zoe beauty products.
The local market has seen entry of international cosmetic brands including Estée Lauder, Maybelline, Revlon, Mac, Lancome, L’Oreal and Swedish cosmetic line Oriflame as well as local brand Pauline Cosmetics.
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