Distell Tuesday announced it has acquired an additional 26.43 per cent stake in KWA Holding East Africa Limited (KWAL), the Kenya’s spirits manufacturer and distributor, from Centum Investment.
The African manufacturer of spirits, wines, ciders and ready-to-drinks (RTDs) now owns a majority shareholding of 52.43 per cent in KWAL, having previously acquired a 26 per cent stake from Industrial and Commercial Development Corporation (ICDC) in 2014.
The transaction will however not affect ICDC’s shareholding in KWAL who remains a significant shareholder in KWAL.
KWAL sold more than 8 million litres of alcoholic beverages last year boosted by popular local brands such as Kibao, Kingfisher and Caprice.
In a statement issued today, Distell said the deal increases its local presence that it considers highly attractive for alcoholic beverage.
“With a population of over 47 million people, Kenya is expected to be one of the fastest growing economies in Africa, driven by rapid urbanization and strong income per capita growth across major cities over the next decade.
Spirits has been the fastest growing segment of Kenya’s alcoholic beverage industry and growth is anticipated to remain robust going forward,” said Donovan Hegland, Distell Africa, managing director.
“This will provide the platform for sustained growth and further cement KWAL’s position as Kenya’s national champion,” said Carlos Gomes, KWAL’s Managing Director.
KWAL had has been distributing a selection of Distell’s brands, including Viceroy, Amarula, Drostdy-Hof and Cellar Cask for more than a decade.
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