This archive report was first published on 29 December 2019.
Chris Kirubi, the billionaire businessman behind Haco Industries, has continued to reap the benefits of selling the BIC East African franchise to Société BIC. The French conglomerate, which owns the BIC brand, has made an additional payment of Sh67 million to Haco Industries Kenya Limited.
As part of the deal, Haco Industries was initially paid €6.3 million (Sh703 million) in 2018. The multinational later announced that Haco is entitled to an additional deferred payment amounting to €9.9 million (Sh1.1 billion) over three years, raising the total compensation to Sh1.8 billion.
With the latest payment, Société BIC has now disbursed a total of €2.4 million (Sh268 million) to Haco Industries in the first nine months of the year. Once all the payments are in, Mr. Kirubi's profit in the deal will stand at about Sh611 million, representing the premium on the value of assets transferred to the French multinational.
According to Mr. Kirubi, the deferred payment is due to the capital commitments Haco had already made in the BIC business by the time the transaction was completed on December 31, 2018. The sale of the BIC division means that Haco is now left to trade in the home care and hair care line of businesses, including Sosoft fabric softener and Miadi shampoo.
