By Etaarifa Contributor
Fast-moving consumer goods manufacturer, Flame Tree Group has announced its intention to acquire four brands from Beauty Plus Trading East Africa, subject to approval from the Competition Authority. The Group considers the acquisition to be an important step in bolstering its growing footprint in the haircare cosmetic segment.
Flame Tree Group will acquire three haircare brands namely, Miss Africa, Black Angel, Beautyplus, and one skincare brand Monalisa. Through the acquisition Flame Tree Group is expecting to tap into the rising popularity of local haircare brands within the mass-market.
The acquisition comes in the wake of the Group reporting of its half-year revenue increase by 43 percent to Ksh 1.11 Billion from 778 million in the same period in 2014.
Heril Bangera CEO Flame Tree Group says, “The acquisition of Miss Africa, Black Angel, and Beautyplus will boost our position in the haircare range, the fastest growing and largest segment in the cosmetics market. We are excited about this acquisition because Miss Africa, is the number two braid spray in the haircare category in East Africa and it makes us the only company to offer braid sprays for the kids segment.”
Consumer spending on local hair care brands has been on the rise due to increased knowledge and product awareness gained from increased marketing campaigns, more affordable products and the wider variety of products included within this category.
According to George Theobald Flame Tree Group Chairman “FTG announced a strong set of interim results, showing that the Group has used the proceeds of its listing effectively to date. Now it is announcing a further acquisition that the Group believes to be strongly value accretive; in line with Group strategy to create value for its shareholders”
This is the second acquisition by Flame Tree Group this year, following its acquisition of Chirag Kenya brands earlier in the year that included Nature’s Own spice brand, which has been a strong performer in the premium natural spice category and is currently one of the leading brands in spices category in Kenya.