Local pharmaceutical manufacturer Fabupharm has said that Eos Capital has acquired 35 percent of its ordinary share capital, pending Namibian Competition Commission approval.
The shareholding deal is expected to enable Fabupharm to become a major player in the Namibian and regional pharmaceutical markets.
Eos Capital is an all-Namibian private equity fund manager with former managing director of Old Mutual Africa Johannes !Gawaxab as executive chairman.
Fabupharm is the only pharmaceutical manufacturing plant in Namibia to date.
Established in 1989 at Otjiwarongo, the company today employs more than 70 Namibians from the Otjozondjupa Region.
Fabupharm manufactures paracetamol, antibiotics, vitamin supplements, body lotions and sunscreen, to name a few of its ever-expanding range of locally manufactured products.
The products are for sale to the public at local retailers and pharmacies and conform to stringent World Health Organisation (WHO) standards required to manufacture pharmaceutical products.
Many are also stocked by Central Medical Stores that supply government hospitals and clinics with medical and pharmaceutical products.
Fabupharm is in the process of obtaining export approval for several of its products, that are to be shipped to Botswana, Mozambique and Lesotho, among other destinations.
Majority shareholder and local retail distribution titan Carl Brinkmann says 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’re pleased to welcome Eos Capital as partners and shareholders of the company. We, at Fabupharm are looking forward to unlocking 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 Fabupharm founder and managing director Fanie Badenhorst.
Eos executive chairman Johannes !Gawaxab said: “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 the local manufacturing capacity and expertise currently residing in local player Fabupharm”.
Eos chief executive officer Nicole Maske added: “Eos will provide the growth capital and strategic support to Fabupharm that will allow it to execute an aggressive growth strategy.”
“We’re excited to partnering 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,” concluded Ekkehard Friedrich, Eos Capital chief investment officer.
Eos Capital’s Allegrow Fund is primarily a growth and operational development fund with a Namibia-only mandate.
The Fund provides equity, debt and mezzanine finance to fast-growing Namibian businesses. It is registered as a Special Purpose Vehicle with Namfisa and has raised N$460 million from local investors.