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As part of a multimillion-dollar deal that began in 2019, Haco Industries has received an additional payment of €2.3 million ($2.31 million) from French manufacturing conglomerate Societe BIC.
Haco Industries is a leading FMCG manufacturer led by the family of late Kenyan multimillionaire businessman Chris Kirubi.
The payment comes nearly three years after Societe BIC completed the acquisition of Haco’s East African facilities manufacturing and distributing stationery, lighters, and shavers in a deal that was to be paid over time, with the majority of the deferred compensation representing inventory costs, raw materials, and equipment, among other operating expenses.
Societe BIC disclosed in its annual financial report that it paid an additional €2.3 million ($2.31 million) to Haco Industries, which is run by Kirubi’s daughter Mary-Ann Musangi, in the fiscal year ending December 2021, bringing the total payouts to the Kenyan FMCG manufacturer to €13.7 million ($13.75 million).
According to Business Daily, the $2.31-million payment is intended to compensate Haco for capital commitments made in the Kasarani, Nairobi, and manufacturing facilities prior to BIC’s acquisition.
When the deal was completed in January 2019, Haco was paid an initial €6.3 million ($6.3 million) under the scheme arrangement. Societe BIC later announced that Haco is entitled to an additional deferred payment of €9.9 million ($9.95 million), leaving a total payment to the Kenyan FMCG group of €2.5 million ($2.51 million).
Rounded in 1970 by Kirubi, Haco Industries is now one of the region’s top FMCG manufacturers.
Now run by Musagi, the business supplies a broad range of Kenyan personal and homecare products to Central and East African markets.
Kirubi, who died last year at the age of 80 after a four-year illness, divided his Ksh20-billion ($176 million) fortune among his family members, according to court documents left behind by the late businessman and acted upon by his legal counsel.
His son Robert and daughter Mary-Ann received 80 percent of his fortune, which included stakes in Centum, KCB Group, Haco Industries, Bendor Estate Limited, and a variety of other businesses.
Meanwhile, his siblings received 20 percent of his fortune, including his brothers Anthony Maina and Michael Kirubi, and sisters Elizabeth Waithera and Salome Mburu).
