Private equity firm Adenia Partners, which owns Kenya’s second-largest supermarket, Quickmart, has raised its local portfolio with the acquisition of Red Lands Roses, a flower farm.
This is after the private equity firm, which invests in Africa, acquired a majority stake in the flower farm’s parent company Altilands SA. The firm did not, however, disclose the financial terms of the transaction.
Red Lands Roses, established in 1996 by agronomist Isabelle Spindler on a 28-acre farm, is a leading grower of premium fresh-cut roses in Kenya.
“We are delighted to partner with Red Lands Roses to help grow this company whose niche business model was pioneered by one of the few women in this male-dominated sector,” said Martha Osier, Partner at Adenia Partners.
The farm is a top global producer of spray roses, producing 16 million stems per year, which comprise more than 200 varieties of fresh-cut roses. It sells exclusively to wholesalers, mainly serving markets in Russia, Eastern and Central Europe.
The private equity firm said it was also impressed by Red Lands’ “strong pricing power, which is driven by the company’s direct route-to-market model that avoids the auction system, where most of Kenya’s fresh-cut-roses are sold.”
Adenia said it would accelerate the expansion of its production capacity through the cultivation of an additional 20ha.
“Adenia has a strong track record of accelerating growth and institutionalising family-led companies like ours. We look forward to partnering with Adenia and leveraging their experience and expertise,” said Red Lands Roses Managing Director, Isabelle Spindler.