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Kisumu, 16th March 2017: Kisumu Concrete Products (KCP) has ceased to be a family owned business with the acquisition of an equity stake by venture capital firm Ascent Capital. KCP becomes the first family owned business in Kisumu and the Western Region to attract private equity funding.
Even though the company did not disclose the amount of stake Ascent Capital now has in KCP, the company that has invested in six other businesses in the region is known to buy stakes ranging from USD 4 million – USD 14 million.
“We are not able to disclose exactly how much we are investing in the company due to confidentiality requests from our partners but we can assure you that the investment will enable KCP to move from being a Kisumu Company to a major player in this region’s construction industry,” said Ascent Capital’s Managing Partner David Owino.
KCP, established in 1978, has actively been supplying roofing and flooring tiles as well as concrete blocks to housing developers and ballast to local and foreign road contractors, helping improve its revenues across western Kenya.
The KCP-Ascent deal could open up Western Kenya for investors in search of investment opportunities in Kisumu and surrounding counties.
Vimal Rabadia, the CEO of KCP said that even though Ascent Capital will not be involved in the day to day running of the business, they will sit on the company’s board and help in decision making.
“They are not coming in as a silent partner and neither are they coming in to run our business. They will be helping us with financial strategies that will help us with our expansion plans . We will also be leveraging on their networks in Europe and other African Countries for our own strategic advancement.”
The deal between the two companies is a milestone in region as a stamp of confidence in the county’s potential to attract investment.
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