Sahel Capital is investing an undisclosed amount in a deal for Dayntee Farms, a commercial poultry farm located in Nigeria’s Kwara State. The deal is being transacted by the Fund for Agricultural Finance in Nigeria, an agribusiness-focused private equity fund which counts a number of Africa-focused institutions and the Nigerian Government among its sponsors. As part of the deal, Sahel Capital’s Olumide Lawson and Olaniyi Oladejo will join Dayntee Farm’s board of directors.
The fresh capital has been earmarked to fund the expansion of the company’s production capacity and tap the growing demand for protein from the West African country’s consumer. Dayntee Farms was founded in 2011 and has prospered selling a range of poultry products including eggs, day-old chicks and point-of-lay hens throughout Nigeria. Located between the large consumer markets of the country’s South West and the country’s South West and the grain producing regions of the North, Dayntee Farms is well-positioned to control its costs and sell its products at competitive prices.
“We decided to invest in Dayntee Farms after a thorough analysis of the opportunities in the Nigerian poultry sector,” said Olumide Lawson, a Partner at Sahel Capital, when commenting on the deal. “We are particularly excited that Dayntee Farms is the latest addition to our portfolio and have full confidence in its management team. In addition, we believe that with our recent investment, the company has the potential to grow significantly into a market leader in the next few years.”
The transaction marks the third deal for the fund, which us targeting a $55 million final close. Within the past 18 months, FAFIN has invested in two agribusinesses in Nigeria–L&Z Integrated Farms, an integrated dairy, and Diamond Pearls Agro Allied, a producer of edible oils.