Flame Tree acquires playground products maker in diversification drive
Listed manufacturer Flame Tree Group has announced its intention to acquire playground equipment maker PolyPlay Limited.
The planned acquisition is the fourth buy out Flame Tree is making since 2014 as it moves to diversify its revenue streams.
Both parties are yet to disclose the financial value of the deal.
Making the announcement on Monday, Flame Tree Group chief executive officer Heril Bangera said the deal presents unique opportunities for the group with rapid urbanization and the need for public and private play areas.
“PolyPlay offers one of the most extensive collections of outdoor and indoor play lines in East Africa and has done an excellent job serving the growing playground recreation market in Kenya,” Mr Bangera said.
PolyPlay already has existing operations in East Africa, with deal expected to expand the firm’s reach.
The company serves multiple market segments, including schools, daycare facilities, restaurants, hotels, resorts, and housing developments.
“With the rapid urbanization across Africa, we believe the acquisition represents immense growth potential not only in Kenya but across Africa as the demand for playground equipment in parts of Africa is still not satisfied,” Mr Bangera said.
In the proposed deal, PolyPlay founder and CEO Derrick Correa will stay on to oversee the running of the firm under the Flame Tree Group umbrella.
He said the decision to sell the business offers immense growth opportunities to leverage on Flame Tree’s existing networks and market access.
“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,” Mr Correa said of the deal.
The acquisition is still subject to Competition Authority of Kenya Approval.
Flame Tree has expanded into the snack and spice business with the acquisition of Chirag and also expanded its cosmetics line with the acquisition of Suzie Beauty.