Browns Investments to buy James Finlay Kenya tea estates business

• Deal to be completed over the coming months
• Deal size yet to be disclosed 
• Browns acquired Finlays’ Sri Lankan tea estates business in 2021
• Finlay Kenya is Brown’s first investment in the Kenyan tea industry

Browns- LOLC Group Deputy Chairman Ishara Nanayakkara

Finlays, a leading global supplier of tea, coffee and botanical ingredients and solutions, yesterday said it has reached an agreement to sell its James Finlay Kenya tea estates business to Sri Lanka’s Browns Investments PLC.

The sale, which will be completed over the coming months, will include all parts of James Finlay Kenya Ltd except the Saosa tea extraction facility. 

Saosa will remain under Finlays’ ownership and the business will continue to source leaf tea, timber and other services directly from James Finlay Kenya, meaning an uninterrupted service to existing customers.

A statement from Finlay said Browns Investments PLC was selected as the approved buyer because of its strong legacy of guiding its tea estates to continued growth, but also its focus on doing so sustainably while supporting its workforce and local communities.

In December 2021, Browns acquired Finlays’ Sri Lankan tea estate business.

Browns is a part of Ishara Nanayakkara-controlled LOLC Holdings PLC group of companies, which is one of the largest and most profitable listed corporations in Sri Lanka. 

The company has a proud heritage in operating plantation businesses, owning Maturata Plantations, Hapugastenne Plantations PLC, and Udapussellawa Plantations PLC. 

It is one of the largest tea producing companies in Sri Lanka consisting of 49 individual estates that stretch across an area of over 30,000 hectares and employs over 10,000 individuals.

James Finlay Kenya is Brown’s first investment in the Kenyan tea industry which it sees as an exciting opportunity for growth. 

As part of the sale agreement, Browns and Finlays have mutually agreed to acknowledge the long-standing support of the local community by selling 15 percent of shares in James Finlay Kenya to a locally-owned co-operative. Finlays has identified a preferred third party which it is currently in discussions with.
While the sale process has concluded, operations for James Finlay Kenya will be business as usual, and a full plan is under development to ensure a smooth transition with no customer disruption. 

On completion of the sale, Browns intends to continue to run the business as it has been operated until now, as a leading global supplier of Kenyan tea, under a new name. There will be no change in the employment arrangements for current employees of James Finlay Kenya.

Kamantha Amarasekera, Director of Browns Investments PLC said, “We’re proud to be moving a business with such a proud heritage into a new phase of sustainable growth. James Finlay Kenya is an incredible business powered by an incredible community and it has an exciting future. We warmly welcome all members of the James Finlay Kenya team into the Browns family.”

James Woodrow, Group Managing Director of Finlays said, “We undertook a rigorous process when identifying a buyer for this unique business, prioritising what was best for James Finlay Kenya and its community. 

Having seen first-hand Browns’ unwavering focus on supporting local people and their communities to thrive when acquiring Finlays Sri Lankan tea estates business in 2021, we have no doubt that Browns is the ideal strategic investor for James Finlay Kenya. We will continue to have a very close relationship with James Finlay Kenya and look forward to continuing to source tea from it and championing Kenyan tea and botanicals across the world.”