PRESS RELEASE – Dakar, Lagos, Tuesday, December 23, 2014 – Shareholders of Nigerian-German Chemicals plc (“NGC”), a leading Nigerian producer and distributor of pharmaceutical products and bottled beverages, approved an investment agreement of up to USD 14 million with Advanced Finance and Investment Group (“AFIG Funds”), manager of the Atlantic Coast Regional Fund (“ACRF”) at NGC’s 2014 Annual General Meeting. NGC is in its 50th year of operation in Nigeria and produces and distributes a suite of over-the-counter and prescription medicines, such as Abidec, Benylin and Valgin, as well as a leading local brand of bottled and flavored water, Sparwasser.
The investment will provide NGC with the means to embark on its next phase of development, which includes the completion of new and more modern production facilities with expanded production capacity. It will also enable the company to add an intravenous fluids plant, further cementing its position as a local leader in the manufacture of critical healthcare products. The investment will also support the company’s continued expansion and diversification of its brand offerings under its own name, and under license from global pharmaceutical leaders such as Johnson & Johnson.
According to Mr. Adeboye Shonekan, CEO of NGC: “The partnership with AFIG Funds represents a unique opportunity for NGC. AFIG Funds brings not only capital to accelerate the company’s growth and expansion, but also support to management and international experience that is already helping to strengthen the company’s ability to seize new market opportunities. NGC has a long and proud history as a leader in Africa’s largest market, and we look forward to building on this legacy to help strengthen the Nigerian healthcare sector, as well as facilitate access to world-class medicines for the people of Nigeria.”
Speaking on behalf of ACRF, Mr. Papa Madiaw Ndiaye, CEO of AFIG Funds, said: “We are pleased to invest in NGC. Over the past six years, we have evaluated a number of pharmaceutical companies in West, Central and East Africa, and found NGC to present one of the best investment opportunities in the sector, in terms of local leadership and strong brands. We place heavy emphasis on the quality of the sponsors we back, as illustrated by our partnership with the Shonekan family on this investment. NGC is a resilient company that is poised to capture the tremendous market opportunities in Nigeria.”
Completion of the investment is subject to Nigerian regulatory approval, including the Securities and Exchange Commission.
About Nigerian-German Chemicals plc
Nigerian-German Chemicals plc (“NGC”), a Nigerian publicly listed pharmaceutical company, is a leader in the production of liquid and tablet medicines. The company also has a beverage production facility, subdivided into water and soft drinks. In the company’s 50 years in the market, it has built a portfolio of brands, several of which such as Abidec, Daga, Gluformin and Valgin are household names in Nigeria. The company produces and distributes its own brands of medicines, as well as several brands under license from major international pharmaceutical companies. The company also has a beverage production line, including Sparwasser, its in-house brand of bottled water that is among the most prominent in Nigeria, and other flavored and carbonated drinks such as Vimto and Sunkist, which it produces under license for the Nigerian market.
About AFIG Funds
Based in Mauritius, Advanced Finance & Investment Group (“AFIG Funds”) is an investment fund management company with USD 122 million under management and one of the premier fund managers dedicated to private equity investment in Africa. AFIG Funds has offices in Dakar, Washington D.C. and Johannesburg. Atlantic Coast Regional Fund LLC (ACRF), the maiden fund of AFIG Funds, is a regional fund focused on 29 countries in West and Central Africa. ACRF considers investments in all sectors, and targets strong growth companies, preferably with a regional scope, in its target region.
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