Nairobi Securities Exchange listed Unga Group is set to exit the bakery business by selling its subsidiary Ennsvalley Bakery. This comes after the bakery business failed to break even in the market. This will see Unga sell off its bakery subsidiary known as Ennsvalley Bakery. The sale will come barely a decade after Unga acquired the business.
The bakery business will be sold to BigCold. “Following discussion, BigCold Kenya Limited and Ennsvalley Bakery Limited… have entered into an asset purchase agreement on July 26, under which, subject to satisfaction of certain conditions and upon completion, Ennsvalley shall sell and BigCold shall purchase Ennsvalley’s assets,” Unga Group said in a notice.
BigCold is a cold storage and cold chain logistics company in Kenya. It is the only FSSC 22000 certified company in East Africa and offers its services to leading brands like; KFC, Subway, Pizza Hut, Farmers’ Choice, and Dairyland.
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Unga acquired the bakery in 2014. In the 1990s, the manufacturer had sold off its shareholding in Elliots bakery in a move that was meant to help it acquire the bakery business. Unga Group currently holds a 52 per cent majority stake in Ennsvalley Bakery. It acquired the stake from NAS Holdings in 2014 at a cost of Sh. 542 million.