Savanna East Africa, Inc. Announces Controlling Acquisition of Condom Manufacturer in Nairobi, Kenya
Savanna East Africa, Inc. today announced the acquisition of fifty-one (501) percent of a condom manufacturing company headquartered in Nairobi, Kenya. The plant is currently in pre-production, though construction of the facility and manufacturing equipment is almost complete. The manufacturing facility's original founders ran short on the funds necessary to complete construction. Savanna East Africa stepped in and acquired the majority interest in the condom manufacturing company in exchange for a commitment to fund the balance of the financing required to bring the plant on-line.
Market Opportunity For Condoms -- Demand Dramatically Exceeds Supply
Savanna East Africa plans to provide local manufacturing to help fill a condom shortage in Kenya. Earlier this year Kenya experienced a critical shortage of condoms with Kenya's government making an appeal to the U.S. government for emergency funding ( http://www.standardmedia.co.ke/InsidePage.php?id=2000031810&cid=4&; ). Kenya currently uses approximately 20 million condoms a month, nearly double the number just seven years ago. As AIDS education grows, the demand for condoms has grown and is expected to continue. Kenya's National AIDS Strategic Plan 2009-2013 hopes to reach a monthly distribution target of 28 million condoms per month. The African continent is the largest per capita consumer of condoms in the world and currently imports approximately ninety percent of all condoms. Savanna's initial plans are to begin producing 10 million condoms per month.
Management Buyout Negotiations Separately, the Savanna East Africa senior management team has initiated negotiations to purchase the controlling interest in Savanna East Africa. The Company's current business plan was implemented in early 2010 under the leadership of the late Major General Hugh Robinson who served as the CEO of Savanna East Africa. Last year General Robinson died unexpectedly and this spring CEO LTC Randell Torno stepped in as a permanent CEO. "The condom manufacturing acquisition is a key benchmark in the development of Savanna East Africa's business plan," said LTC Torno. "General Robinson played a key role in the original negotiations and Savanna has had to rebuild confidence here in the local Nairobi market. We are back on track and ready to rapidly proceed. A management acquisition is appropriate to maintain rapid development."
Savanna East Africa Business Plan Savanna East Africa is concentrating on developing high growth potential capacities within the housing, healthcare and high tech sectors in East Africa, initially in Kenya, with plans to explore business development opportunities into Ethiopia. Nairobi is the capital and largest city in Kenya, as well as the most populated city in East Africa. Nairobi is also home of the headquarters of UN-HABITAT and the United Nations International Strategy for Disaster Reduction Regional Offices for Africa.
This article was originally posted on East Africa Business Communities
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