South African food firm RCL Foods will acquire 33.5% stake in poultry producer Hudani Manji Holdings (HMH) in a $4.66m deal as part of an agreement between both the companies.
The acquisition will allow the company to make its entry into the East African region.
The deal, if closed, is expected to create one of the largest processors and marketers of chicken in both Uganda and East Africa, the company said.
Based in Uganda, HMH operates feed mill, broiler farms and processing plant. It is the parent company of the Yo Kuku! brand, which offers fresh and frozen whole chicken, chicken parts, fillet, value added products and chicken by-products.
The Yo Kuku! Farm was established to cater to the high demand for chicken in Uganda.
RCL Foods, formerly known as Rainbow Chicken, processes and markets chicken under the Rainbow, Farmer Brown, Rainbow FoodSolutions, Epol, and Cobb brand names.
Besides chicken, the company also produces a range of food products comprising grain and edible oil-based products, sorghum, peanut butter, rusks, and pet foods, as well as salad dressings, dips, and spreads.
