Nairobi Securities Exchange-listed Flame Tree Group has acquired a playground equipment manufacturer and distributor, PolyPlay, in a bid to grow its revenue base.
Financial terms of the deal were not disclosed in the transaction which is subject to regulatory approval.
PolyPlay is based in Nairobi. Flame Tree — which makes plastic water tanks, mobile toilets and cosmetic and hair care products — has made three acquisitions since its listing on the NSE in November 2014, expanding its manufacturing capability and product lines.
They include Chirag Kenya, a snacks and spices maker, cosmetics brand SuzieBeauty, and three haircare brands from Beauty Plus Trading East Africa.
Flame Tree, which listed on the bourse’s Growth and Enterprise Market Segment (GEMS), said that Mr Derick Correa, the PolyPlay managing director, and about 30 staff will continue working at PolyPlay “to build the company.”
“He will be responsible for ensuring the continued growth and protecting the strengths of PolyPlay brand in Kenya and across Africa,” the firms said in a statement.
Heril Bangera, CEO of Flame Tree, said in an interview the acquisition will boost its product lines. “It’s in the same line of our business and we hope to expand this relative new business to the rest of Africa,” said Mr Bangera.
Mr Correa welcomed the deal. “Flame Tree Group gives PolyPlay an opportunity to expound on this expertise through its industry leadership in the different African countries where it has manufacturing and distribution presence,” he said.
The company has operations in Mauritius, Kenya, Rwanda, Ethiopia, Dubai and Mozambique.
The firm’s profit after tax declined 4.3 per cent for the half year to June 30 2017 to Sh67.7 million, from Sh70.7 million in a similar period a year earlier.
Flame Tree’s brands include Roto Tanks, Jojo Plastics, Zoe, Cerro, Alana Skin, Siora, Happy’s and Buildmart.