Money Markets
Continental Products managing director Alfred Lenana. PHOTO | FILE
By JOHN GACHIRI
In Summary
- HB Fuller said the acquisition of the company that is ranked among Kenya’s Top 100 mid-sized firms is meant to increase sales of its adhesive products used in the region’s construction and labelling industries.
- The two firms have been working together since 2003 when Continental was appointed HB Fuller’s sales agent for the region.
- Continental sales for 2014 are expected to be around €2.3 million (Sh254 million).
HB Fuller, an American maker of adhesives and
sealants, has agreed to acquire Kenyan manufacturer Continental Products
Ltd for an undisclosed amount.
The listed adhesives manufacturer said the acquisition of
the company that is ranked among Kenya’s Top 100 mid-sized firms is
meant to increase sales of its adhesive products used in the region’s
construction and labelling industries.
“HB Fuller has a strategic focus on growth in
emerging markets, and the Continental business will enable us to deliver
speciality adhesive products to key customers in the East and central
African regions,” said Steve Kenny, the firm’s senior vice president for
Europe, India, Middle East and Africa.
The two firms have been working together since 2003 when Continental was appointed HB Fuller’s sales agent for the region.
Continental founder and managing director Alfred
Lenana said he could not reveal the deal price for the company he
founded in 1996, but said the decision to sell has been in the offing
for some time.
“We have been partners for many years and it is something that I have been thinking about,” said Mr Lenana.
He will remain the company chief executive. HB
Fuller said its new acquisition will enable it roll out more products by
leveraging on the distribution network that has been developed and on
Continental’s manufacturing capacity.
“The Continental team has developed extensive
market knowledge and exceptionally strong customer relationships, and
coupled with their local manufacturing capabilities, HB Fuller will be
able to further enhance partnerships with its customers to develop and
produce new and better products for their customers,” added Mr Kenny.
Continental sales for 2014 are expected to be around €2.3 million (Sh254 million).
The firm was ranked 96th in the 2010 Top 100-Mid Sized companies competition sponsored by the Business Daily and KPMG.
Foreign firms have been buying local companies in
manufacturing, hospitality and financial services as part of expansion
into Kenya and other East African markets.
Shield Assurance was bought by UK’s Prudential Plc
in September. Prudential did not disclose how much it bought Shield
Assurance for, but said part of the Sh1.5 billion it was to invest
locally would be used to pay off some shareholders.
City Lodge, a South African hotel chain listed on
the Johannesburg Stock Exchange, completed buying out Fairview Group of
hotels in September for Sh3 billion.
French cosmetics conglomerate L’Oreal bought InterConsumer in 2012 for an undisclosed amount.
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