Finlays has agreed to sell its James Finlay Kenya tea farm business to Browns Investments PLC based in Colombo, Sri Lanka.
Finlays said in a statement on Thursday that the sale, which will take place over the next few months, will comprise everything of James Finlay Kenya Ltd, excluding the Saosa tea extraction facility.
Finlays will continue to own Saosa, according to the firm. The company will continue to acquire leaf tea, lumber, and other services directly from James Finlay Kenya, ensuring that existing customers receive consistent service.
It was observed that Browns Investments PLC was chosen as the preferred buyer because of its strong record of steering its tea farms to further expansion and its commitment to doing things well.
The corporation, headquartered in Colombo, has a long history of operating plantation enterprises, including Maturata Plantations, Hapugastenne Plantations PLC, and Udapussellawa Plantations PLC. It is one of the significant tea-growing firms in Sri Lanka, with 49 other estates spanning over 30,000 hectares and employing over 10,000 people.
Mr James Finlay Kenya is Brown's first investment in the Kenyan tea sector, which it sees as a promising growth prospect.
Browns bought Finlays' Sri Lankan tea estates company in December 2021, which has grown from strength to strength, reflecting Browns' commitment to sustainable growth in the industry.
Throughout the sale process, Finlays prioritized the interests of James Finlay Kenya as an enterprise and its employees. Browns and Finlays have decided to honour the local community's long-standing support by selling 15% of shares in Finlays Kenya to a locally-owned co-operative as part of the sale deal.
While the sale process is completed, James Finlay Kenya operations will continue as usual, and a comprehensive plan is being developed to ensure a smooth transition with no customer disruption. Browns want to continue operating the business as it has been doing so until now after the deal is completed.
Finlays has a lengthy history of tea estate ownership. Nonetheless, a strategic review in 2022 determined that a new investor in James Finlay Kenya would continue to guide this unique business toward long-term sustainable growth to benefit the entire community and the Kenyan economy.
