Amsons Group absorbs Bamburi Cement after $183M acquisition

• Amsons Group has started integrating its new acquisition, Bamburi Cement of Kenya into its industry portfolio in the region. Amsons says it will invest $400M in Bamburi in the next three years.
• With Bamburi Cement’s integration, Amsons Group’s total cement manufacturing capacity has now grown to 13,000MT/day.
• Tanzania-based conglomerate says it will enhance the high operating and commercial standards set by Holcim Ltd and Lafarge.

Tanzania-based conglomerate Amsons Group has announced that it has started integrating its new acquisition, Bamburi Cement of Kenya into its corporate fold in the region.

The family-owned company said the integration through its Kenyan subsidiary and investment vehicle, Amsons Industries (K) Ltd, follows the recent closure of a transaction in which Amsons Group placed a $183 million bid and acquired over 95 per cent of the issued equity shares in Bamburi late last year.

Amsons Group Managing Director Mr Edha Nahdi said the integration will be seamless and involve minimum operating and administrative disruptions for the Kenya-based firm.

“From the onset, I want to assure Bamburi Cement stakeholders of our commitment to upholding and enhancing the high operating and commercial standards set by Holcim Ltd and Lafarge. That is our promise to our customers, employees, banks, suppliers and all stakeholders,” Nahdi said.

He noted that Amsoms Group, which has presence in the region cutting across manufacturing, energy, and transportation, will strive to maintain and improve the operating standards and policies already deployed by Bamburi’s former majority equity shareholders.

As part of the commitment, Mr Nahdi confirmed that Amsons Group will maintain the professional services of the executive management team led by Bamburi Cement CEO Mr Mohit Kapoor to ensure continuity and continued excellence.

Pan-African business growth journey

While welcoming Bamburi Cement stakeholders, Mr Nahdi described the firm as the latest member of the Amsons family, and assured that it holds a special place in the firm’s panAfrican business growth journey.

“Together with our flagship cement business, Camel Cement, and the growing Mbeya Cement operations, we are proud to welcome Bamburi Cement as part of this dynamic and forward-thinking group,” said Nahdi.

He added: “At Amsons Group and as the integration process gets underway in earnest, we have strategic growth plans for Bamburi Cement, with a strong focus on fuelling growth and contributing significantly to Kenya’s national development. We are aligned with His Excellency President William Ruto’s economic transformation agenda, which places manufacturing at the heart of Kenya’s ambitious building and construction goals.”

He further disclosed that Amson’s Group, fresh from the US$183 million acquisition, is looking to invest an additional US$400 million over the next three years to power growth at Bamburi Cement. This will include the development of the Bamburi Cement Integrated Clinker plant in Matuga, Kwale County.

“We are confident that these investments will position the company for sustained success and strengthen Bamburi Cement’s market leadership,” Nahdi said.

Amsons Group presence in Eastern Africa

Founded in 2006 in Tanzania, Amsons Group‘s roots lie in the importation of bulk oil and petroleum products under the Camel Oil Tanzania retail brand. The conglomerate has been growing steadily, over the years diversifying into a wide range of sectors.

At the moment, the firm’s manufacturing operations cut across cement production with an estimated capacity of 6,000MT/day, bolstered by the recent acquisition of Mbeya Cement. With Bamburi Cement’s integration, Amsons Group’s total cement manufacturing capacity has now grown to 13,000MT/day.

The firm also operates a 500MT/day wheat flour milling plant, a state-of-theart premix concrete plant, Inland Container Depots (ICDs), Fuel and lubricants, Liquefied Petroleum Gas (LPG), alongside a transportation fleet spanning Zambia, Malawi, Mozambique, the Democratic Republic of Congo, Burundi and Tanzania.

In the fuel sector, Amsons Group operates fuel depots in several countries, including Tanzania, Mozambique, Zambia, and DRC, with a robust network of over 150 retail stations.

Read also: Tanzania’s AMSONS Group gets Comesa nod to acquire Kenya’s Bamburi Cement