Home ECONOMY Chris Kirubi to now get Sh. 1.8 billion from sale of Bic

Chris Kirubi to now get Sh. 1.8 billion from sale of Bic

by biasharadigest

Chris Kirubi Haco: Billionaire Chris Kirubi’s is now set to get an astonishing Sh. 1.8 billion pay from the sale of Haco industries’ Bic Franchise. This has been revealed by the French multinational firm Société BIC which now says that it will make further payment to Kirubi amounting to a total of Sh. 1.8 billion.

Earlier this year, it was first revealed that Kirubi would pocket some Sh. 700 million from the sale of the business. “Haco Industries’ Bic acquisition cost (6.3 million euros or Sh. 714 million),” BIC revealed in its results update for the year ended December. “On 31 December 2018, BIC announced the transfer of Haco Industries Kenya Ltd manufacturing facilities in Kenya and distribution of stationery, lighters and shavers in East Africa to BIC. This acquisition is in line with BIC’s continued growth strategy in Africa, one of the most promising markets for BIC products in the world.”

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In the new disclosures, Bic said that it will pay Mr. Kirubi’s Haco industries Kenya an extra Sh. 1 billion in addition to the earlier amount of Sh. 718 million.

The transaction, which was completed on January 1, 2019, brought to an end nearly 40 years of Haco’s BIC franchise that saw it manufacture and sell branded stationery, lighters and shavers.

BIC also acquired Haco’s semi-automated production plant located in Kasarani as part of the transaction. “My success is Kenya’s success and after nearly 40 years of fruitful collaboration with BIC, and having built the business to become Kenya’s number one stationery manufacturer and distributor, this transaction is tangible proof of BIC’s confidence and belief in Kenya and the growth potential of the region,” Mr. Kirubi said in a statement.

The deal added to the emerging trend in retail and fast moving consumer goods sector, where multinationals have squeezed out local franchises by buying them out or forcing them into joint ventures. Such moves have been seen to arise from the desire to take a bigger chunk of profits as well as enforce standards, including pricing, marketing and customer service. Chris Kirubi Haco.

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