Danone to acquire 40% stake in dairy firm Brookside

French food firm Danone has reached an agreement to acquire a 40% stake in Kenyan dairy products group Brookside.

The acquisition is part of Danone’s strategy to tap into new markets amidst weaker growth in European and Chinese markets.

The financial terms of the transaction have not been disclosed.

Founded in 1993, Brookside has a distribution network of more than 200,000 outlets and holds about a 40% share of the Kenyan dairy market.

The company manages the largest milk collection network in East Africa, with over 140,000 farmers, and reported revenues of €130m last year.

Its product portfolio includes fresh and UHT milk, powdered milk, yogurts, fermented milk, ghee and butter.

The partnership combines Danone’s international expertise in fresh dairy products with Brookside’s regional expertise and robust supply chain.

It allows Brookside to expand its product portfolio and strengthen its presence in key markets in the East African region, including Uganda and Tanzania.

Danone holds top positions in healthy food through four businesses: Fresh Dairy Products, Early Life Nutrition, Waters and Medical Nutrition.

The company operates more than 190 production plants, with around 104,000 employees. In 2013 it generated sales of over €21bn.

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Image: Brookside’s product portfolio includes fresh and UHT milk, powdered milk and fermented milk. Photo courtesy of Somchai Som at FreeDigitalPhotos.net.