Private equity firm Adenia Partners through its special purpose vehicle Sokoni Retail Kenya has inked a deal to acquire majority stake at Quick Mart at an undisclosed amount.
The deal will see operations of Quick Mart and Tumaini Self Service merged to float a new retail store that seeks to compete with other established retailers such as Tuskys and Naivas.
“Quick Mart and Tumaini Self Service announce that their respective board of directors have authorised the commencement of a merger and business integration of the two companies. This follows the approval by the Competition Authority of Kenya on August 26,” Quick Mart managing director Duncan Kinuthia and his Tumaini counterpart Moses Nditika said in a joint statement.
Quick Mart is owned by the family of the late John Kinuthia, while Sokoni Retail Kenya acquired majority stake at Tumaini last year. The new merged entity will trade under the brand name Quick Mart.
Currently, Quick Mart supermarket has 11 branches while Tumaini Supermarkets has 13. It will take at least 12 months to fully actualise the merger and bind operations.
“The merger will bring together two emerging retail chains both undergoing rapid growth. The combined company will create a network of 30 stores at the end of 2019, all located in convenient neighbourhood locations,” the joint statement read.
The merged entity will be headed by Mr Peter Kang’iri as Group CEO and managing director.