Local supermarkets Quick Mart and Tumaini are set to merge their operations into one entity in an effort to grow their customer base and revenues.
This comes after Private Equity (PE) firm Adenai Partners, through its subsidiary Sokoni Retail, inked an agreement to acquire majority stake in local retailer Quick Mart for an undisclosed fee.
Apart from managing Quick Mart, Adenai Partners similarly oversees operations at Tumaini Supermarkets after acquiring majority stake in the retailer last year. According to the agreement, Tumaini supermarkets will now trade under the brand name Quick Mart. As it stands, Quick Mart supermarket has 11 outlets within the country while Tumaini Supermarkets has 13.
“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,” reads a joint statement issued by Quick Mart Managing Director Duncan Kinuthia and his Tumaini counterpart Moses Nditika.
“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 added.
According to the Business Daily, the operational tie-up will be implemented over a period of approximately 12 months after the legal merger takes effect. The local daily similarly reports that Mr. Peter Kang’iri has been selected to oversee the transition at the company as the Group CEO and Managing Director.
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