Sokoni Retail Kenya, a special purpose vehicle controlled by private equity firm Adenia Partners has concluded a deal to acquire a majority stake at emerging retailer Quick Mart at an undisclosed amount.
The process, already approved by industry regulator Competition Authority of Kenya (CAK), will see Sokoni merge the operations of Quick Mart and Tumaini Self Service to form a single retail operation that is set to give the investor a stronger footing in Kenya’s competitive formal retail space.
This will see the family of late Quick Mart founder John Kinuthia relinquish control.
Sokoni Retail had acquired a majority stake in Tumaini last year.
“Quick Mart and Tumaini Self Service announce that their respective board of directors have authorised the commencement of a merger and business integration of the two companies. This follows the approval by the Competition Authority of Kenya on August 26,” reads a joint statement issued by Quick Mart managing director Duncan Kinuthia and his Tumaini counterpart Moses Nditika.
Under the deal, Tumaini supermarkets will now trade under the brand name Quick Mart.
The operational tie-up will be implemented over a period of approximately 12 months after the legal merger takes effect.
Mr Peter Kang’iri has been appointed as Group CEO and managing director to steer the transition and implement business strategy and expansion.
“Pursuant to Section 46(6) of the Act, we wish to notify you that the authority has approved the implementation of the proposed merger….We shall cause the publication of this notice in the Gazette as soon as it is practicable,” reads a letter from CAK signed by director-general Wango’mbe Kariuki.
Currently, Quick Mart supermarket has 11 branches while Tumaini Supermarkets has 13.
“The merger will bring together two emerging retail chains both undergoing rapid growth. The combined company will create a network of 30 stores at the end of 2019, all located in convenient neighbourhood locations,” the joint statement read.