Sri Lanka's Hemas Holdings has completed the acquisition of a 75 per cent stake in Twiga Stationers, the Kenyan manufacturer of the Kasuku and Crownbird stationery brands, in a deal valued at Sh2.86 billion ($22 million).
The transaction, structured with Sh1.8 billion ($13.8 million) of net working capital and cash included, values Twiga Stationers at an implied 11.3 times its earnings, according to details shared by the company.
The deal excluded Twiga Stationers' manufacturing facility, which the company will instead lease from its previous owners on a long-term basis.
Following the deal, Hemas Holdings will appoint new CEO, a new Head of HR and a new Head of Sales as the firm transitions Twiga Stationers from owner-managed company into a professionally well run entity.
Twiga Stationers reported sales of Sh4.95 billion ($38.23 million) for the year ended April 30, 2025 and a net profit margin of 4.5 per cent after adjusting for rent and acquisition-related expenses.
Hemas Holdings, which is Sri Lanka's leading manufacturer of home and personal care products, said the acquisition is part of a wider strategy to gain a foothold in the broader East African market.
Management told investors that once operations are settled and the company has a firmer understanding of the East African market through Twiga Stationers, it intends to widen its footprint into other consumer product segments in Kenya and the region, beyond stationery and learning products
In Sri Lanka, Hemas Holdings provides a wide range of products for babies and adults across hair care, skin care, toiletries, fragrances and oral care.
The firm also sells school stationery, notebooks, pens, pencils and colour products through its subsidiary, Atlas.
