Browns Investments boosts plantation portfolio with Rs. 4.8 bn FLMC deal

Browns Investments PLC (BIL), the investment arm of Sri Lanka’s LOLC Group has acquired FLMC Plantations (Pvt) Ltd in a Rs. 4.8 billion deal.

The acquisition was finalised on 5 May through a share sale and purchase agreement with Damro Manufacturing (Pvt) Ltd and Piyestra Furniture (Pvt) Ltd, BIL said in a statement.

FLMC Plantations is the holding company and managing agent for Pussellawa Plantations Ltd (PPL) and Melfort Green Teas (Pvt) Ltd. PPL operates more than 11,500 hectares of land across 24 estates in Sri Lanka’s major tea-growing regions, including Nuwara Eliya, Kandy and Sabaragamuwa.

The estates produce 4.3 million kg of made tea and 2.3 million kg of rubber annually.

“Over the past two decades, LOLC Group has been guided by a bold vision of expansion and diversification, positioning ourselves as a global powerhouse across multiple sectors,” said LOLC Holdings Group Managing Director and CEO Kapila Jayawardena.

“Our acquisition of FLMC Plantations through Browns Investments PLC is another key milestone in strengthening our leadership in agriculture and plantations. This acquisition further solidifies our position as the largest tea producer and exporter, both in Sri Lanka and globally,” he said.

The deal is part of BIL’s strategy to consolidate its plantation operations and adds to its existing holdings including Maturata Plantations, Udapussellawa Plantations, Hapugastenne Plantations and Tea Smallholder Factories PLC. The expanded portfolio brings the Group’s annual made tea production in Sri Lanka to around 17.5 million kg.

Globally, the LOLC Group is the largest tea producer and exporter with an annul output of approximately 100 million kg, with operations in China, Kenya, Rwanda and Tanzania.

The Group said it remains committed to aligning with the United Nations Global Compact Sustainable Development Goals on climate change mitigation and skills development.