EOS Capital buys Fabupharm stake
Eos Capital has acquired a 35 percent stake in Fabupharm (Pty) Ltd, in a deal that is still subject to approval by the Namibian Competition Commission (NaCC).
Otjiwarongo-based Fabupharm is the only pharmaceutical manufacturing plant in Namibia, having been established in 1989 with an employee compliment of about 70 Namibians.
“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,” Eos Capital Executive Chairman Johannes !Gawaxab said.
Business Monitor International estimates that the Namibian pharmaceutical market is currently valued in the region of N$3 billion.
!Gawaxab said the acquisition was consistent with the industrialisation and ‘Growth at Home’ strategies of the government, before adding it would assist the government in setting up its long-desired pharmaceutical plant, off the strong base that Fabupharm has built up over many years.
Fabupharm manufactures paracetamol, antibiotics, vitamin supplements, body lotions and sunscreen, among other products in its ever-expanding locally-produced catalogue.
These products are for sale to the public at local retailers and pharmacies, while many are also stocked by the Central Medical Stores, which supply government hospitals and clinics with medical and pharmaceutical products.
Fabupharm has also obtained export approval for several of its products, which are to be shipped to Botswana, Mozambique and Lesotho, among other destinations.
Fabupharm founder and Managing Director, Fanie Badenhorst, said they are looking forward to unlocking new growth potential, with the addition of Eos Capital’s expertise, including the unlocking of more local and international markets.
“We are 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,” Badenhorst said.
The deal is the second acquisition by Eos Capital, since its launch early this. A few months ago, Eos also bought Elso Holding, which is a soap and toilet paper manufacturing company, with branches in Windhoek and Swakopmund, and several outlets around the country.
EOS Capital’s Chief Investment Officer, Ekkehard Friedrich, said their main objective was to offer strategic assistance and growth capital to the company, and further boost productivity, in line with the government ‘Growth at Home’ strategy, under the Harambee Prosperity Plan.
Eos Capital is a Namibian private equity fund manager, fronted by !Gawaxab, who is a former Old Mutual Africa Managing Director. Nicole Maske is the Chief Executive Officer.
The company’s Allegrow Fund is primarily a growth and operational development fund, with a Namibian-only mandate. It is registered as a Special Purpose Vehicle with the Namibia Financial Institutions Supervisory Authority (Namfisa), having raised N$460 million from local investors.
The fund provides equity, debt and mezzanine finance to fast-growing Namibian businesses.