Eos Capital, the Namibian private equity firm founded by Johannes !Gawaxab , is acquiring a 35% in Fabupharm, a pharmaceutical manufacturer with regional expansion ambitions. Financial terms of the deal, which is subject to regulatory approval by the country’s Competition Commission, were not disclosed.
Fabupharm, which operates the only pharmaceutical manufacturing plant in Namibia, produces a range of products including paracetamol, antibiotics, vitamin supplements and sunscreen. Established in 1989 and located in Otjiwarongo, the company employs more than 70 employees and counts Central Medical Stores which supply the Namibian Government’s hospitals and clinics, and several local retailers and pharmacists among its clients. The firm has also secured export approval for a number of its products to be shipped to Botswana, Mozambique and Lesotho and a number of other countries.
“Business Monitor International estimates the Namibian pharmaceutical market to be in the region of N$3 billion in 2016,” said Johannes !Gawaxab, EOS Capital’s Executive Chairman. “Our aim is to localize more of this market to the benefit of Namibians by expanding on local manufacturing capacity and expertise currently residing in local player Fabupharm.”
He continued. “This is consistent with the Industrialization and Growth-at-Home strategies of the Government. We are open to public private partnerships and are willing to assist Government in setting up its long-desired Government pharmaceutical plant off the strong base that Fabupharm has built over many years.”
Eos Capital announced its maiden investment in May 2016 by taking a majority stake in Elso Holdings, a Namibian manufacturer of biodegradable toxic-free cleaning equipment and products in an undisclosed deal. At the time, the firm’s Allegrew Fund had reportedly held a first close a N$450 million or approximately US$26 million.
In July 2015, New Era reported that Eos Capital has a target of between N$500 million and $750 million for the Allegrew Fund and look at doing deals with a minimum of N$10 million in businesses in the consumer, services, ICT, general industrial and environmental sectors.