EOS Capital makes first move- Acquires 35% equity in Fabupharm
With only N$460 million in seed capital, EOS Capital has made its first strategic acquisition by taking up a 35% equity stake in established pharmaceutical, Fabupharm.
Early this week, Fabupharm announced that EOS Capital has acquired 35% of its ordinary share capital, pending Namibian Competition Commission approval. This shareholding deal will enable Fabupharm to grow its operations and possibly move into new markets in neighbouring countries.
Fabupharm is the only pharmaceutical manufacturing plant in Namibia. Established in 1989 in Otjiwarongo the company employs more than 70 Namibians from the Otjozondjupa region. It conforms to stringent World Health Organisation standards for the manufacture of pharmaceutical products.
Fabupharm manufactures paracetamol, antibiotics, vitamin supplements, body lotions and sunscreen, to name a few products of an ever-expanding locally manufactured range of products. These products are for sale to the public at local retailers and pharmacies. Many are also stocked by Central Medical Stores who supply state hospitals and clinics with medical and pharmaceutical products. Fabupharm is in the process of obtaining export approval for several of its products which are to be shipped to Botswana, Mozambique and Lesotho, among other destinations.
Majority shareholder Carl Brinkmann, said he “is excited about the growth prospects of the business and the potential to uplift the profile of the Namibian manufacturing sector, which has been dominated by international players for so long”.
“We are pleased to welcome EOS Capital as partners and shareholders of the company. We, at Fabupharm are looking forward to unlock new growth potential with the addition of EOS Capital’s expertise in the extension of the business in the local, public and export markets,” said Fanie Badenhorst, Fabupharm founder and Managing Director.
Johannes !Gawaxab, EOS Executive Chairman stated: “Business Monitor International estimates the Namibian Pharmaceutical market to be in the region of N$3 billion in 2016 – our aim is to localise more of this market to the benefit of Namibians by expanding on local manufacturing capacity and expertise currently residing in local player Fabupharm”.
Nicole Maske, EOS Capital’s Chief Executive Officer, added: “EOS will provide the growth capital and strategic support to Fabupharm that will allow it to execute an aggressive growth strategy.”
“We are excited to partner with Fabupharm as we believe pharmaceuticals is a defensive industry and Fabupharm itself offers lots of potential for growth and has a diversified customer base,” commented Ekkehard Friedrich, the EOS Capital Chief Investment Officer.
EOS Capital is an all-Namibian private equity fund manager led by the former Managing Director of Old Mutual Africa Mr. Johannes !Gawaxab serving as Executive Chairman. He is assisted by Nicole Maske, who brings significant strategic and financial experience serving as CEO, and Ekkehard Friedrich, who brings considerable international transaction advisory experience, as CIO.
The company’s Allegrow Fund is registered as a Special Purpose Vehicle with the Namibian Financial Institutions Supervisory Authority and raised N$460million from local investors.