Haco Industries, the fast moving consumer goods manufacturer owned by Kenyan businessman Chris Kirubi, has relinquished its manufacturing and distribution rights of BIC stationery and personal care products to French company Société BIC, the original owners of the brand.
Over the last 40 years, Haco Industries has been manufacturing and marketing BIC branded pens, lighters, shavers and notebooks, but all these will now be handled by Société BIC. The deal will result in the transfer of Haco’s BIC manufacturing facilities in Kenya as all its distribution facilities to the French multinational.
“After 40 years of successful collaboration with BIC, this transaction is proof of BIC’s confidence and belief in Kenya and the growth potential of the region,” Kirubi said at a ceremony in Nairobi on Friday. Kirubi said the transfer would give Haco the opportunity to diversify and develop its own product lines.
According to a report by Kenya’s Star newspaper, the transfer is subject to approval by Competition Authority of Kenya, and should be completed by January 1 2019. The financial terms of the deal were not disclosed, but Kirubi is expected to walk away with millions of dollars when the transaction is finalized.
Haco Industries, one of Kenya’s largest consumer goods manufacturers, has agreements with several multinationals to manufacture and sell their brands in Kenya and East Africa. The company manufactures soaps, beauty lotions and pasta. The company is owned by Kenyan business mogul Chris Kirubi who is the largest shareholder in Nairobi Stock Exchange-listed investment company Centum Investments.
-Additional Reporting by Forbes
