Varun Beverages to acquire Devyani Food Industries for US$32M

KENYA – Varun Beverages’ wholly-owned subsidiary, VBL Industries (Kenya) Limited, has entered into an agreement to acquire the value-added dairy beverages, juices, and packaged drinking water business of Devyani Food Industries (Kenya) Limited for US$32 million.

The deal, valued at 0.9x EV/Revenue, is aimed at deepening Varun Beverages’ penetration in Kenya and the broader East African region, and is expected to be completed on or before August 1, 2026.

The agreement involves the purchase of the business as a going concern, including all associated assets. Devyani Food Industries (Kenya) Limited is identified as a promoter group company, and the transaction has been conducted at arm’s length.

The acquisition will enable VBL Kenya to leverage the existing manufacturing infrastructure and distribution capabilities of the target company, with plans to subsequently launch carbonated soft drinks and energy drinks in the region.

Strategic Asset Acquisition

The acquisition includes a manufacturing facility situated on a strategically located land parcel of 52 acres with a built-up area of 17,500 sq. mtr. on a national highway in Nakuru, Kenya.

The plant is equipped with utilities such as an RO plant, boiler, effluent treatment plant, DG set, and air compressor.

The facility holds accreditations from reputed international agencies, including Food Safety System Certification 22000 and ISO 9001:2015, ensuring world-class quality and safety standards.

Bevco to acquire South Africa’s Crickley Dairy

Recently, the Beverage Company Proprietary Limited (Bevco), a subsidiary of Varun Beverages Limited, signed an agreement to acquire a 100% equity stake in Crickley Dairy Proprietary Limited, a South Africa-based dairy company. 

In a regulatory filing, the company confirmed the execution of the agreement on March 17, 2026. 

The transaction remains subject to regulatory approvals, including clearance from the Competition Commission of South Africa. 

Under the terms of the deal, Bevco will acquire the entire equity stake in Crickley for an enterprise value of ZAR 238 million (US$14.3M). 

Varun Beverages Limited said the acquisition aligns with its strategy to diversify its product portfolio into new categories such as value-added dairy and juice-based beverages. 

The agreement has been executed between Bevco, Clark Holdings Proprietary Limited, and Crickley Dairy Proprietary Limited. 

Varun Beverages clarified that it does not currently hold any stake in Crickley and that neither Clark Holdings nor Crickley is related to its promoter group. 

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