NAIROBI, Kenya, May 7 – Browns Investments, a Sri Lankan company, has acquired all tea estates owned by Lipton Teas and Infusions Kenya, pending regulatory standards clearance.
The Colombo-based firm has also taken over other Lipton’s subsidiaries in Rwanda and Tanzania.
As part of the deal, Bomet and Kericho communities, where the tea estates are located, will be given a 15 percent stake in the newly bought company.
The new owner has also announced that it will jointly create a Community Welfare Trust with an initial Sh1 billion investment to address other challenges facing local communities.
“LIPTON Teas and Infusions has agreed terms of a partnership which will result in the transfer of its tea estates in Kenya, Rwanda, and Tanzania to Browns Investments alongside an agreement that all tea sold by Browns worldwide will be grown and harvested to a new set of standards covering quality, social and environmental protections,” the firm said in a statement.
Lipton Kenya Estates is made up of 11 plantations and eight factories distributed across the two counties of Bomet, Kericho and Kiambu.
This comes barely a few years after Lipton Tea’s assets were acquired by the European private equity firm CVC Capital Partners from Unilever more than 3 years ago.
“Browns is the perfect partner, with the credibility, capabilities and scale, to work with us to raise standards in the whole tea industry,” Nathalie Roos, Chief Executive Officer of LIPTON Teas and Infusions, said.
“The team’s commitment to sustainability and community development aligns with our own. Together, we are setting a new precedent for transforming the global tea market-one cup at a time.” Roos added.
