Sahel Capital in Dayntee Farms deal

02 Aug 2016

Sahel Capital, Fund Managers for the Fund for Agricultural Finance in Nigeria (FAFIN), announced its most recent investment – in Dayntee Farms Limited, a commercial poultry farm located in Kwara State, in the North Central region of Nigeria. 

Founded in 2011, Dayntee Farms produces a variety of poultry products including table eggs, day‐old chicks and point‐of‐lay birds, which it supplies to customers across the country. The company is run by a strong management team with decades of experience in poultry farming, and a knowledgeable Managing Director, Ayodele Alade, who has led the company’s steady growth from inception.

Dayntee Farms is strategically located between the large poultry market of the South West and the grain producing regions of the North, which enables it to source raw materials at relatively low cost and sell its products at competitive prices. Mr. Olumide Lawson, a Partner at Sahel Capital, when discussing the investment noted, “We decided to invest in Dayntee Farms after a thorough analysis of the opportunities in the Nigerian poultry sector. 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 demand for animal‐based protein in Nigeria is being driven by the growing population and increasing spending power of the middle class. FAFIN’s investment in Dayntee Farms is geared towards expanding the company’s production capacity to take advantage of the opportunities created by increased consumer demand. In addition to this, invested funds will be used to augment Dayntee Farms’ working capital and improve its distribution network. According to Ayodele Alade of Dayntee Farms, “Sahel Capital has come in at a time when Dayntee Farms is ready to move to the next stage of its growth. They are the right kind of partner for us because they share our vision for the company and have the expertise and resources to help us realize it.” 

With FAFIN’s investment in Dayntee Farms, its Board of Directors has been reconstituted to include two independent directors, who will bring years of corporate experience and industry expertise to the company. Mr. Olumide Lawson and Mr. Olaniyi Oladejo from Sahel Capital’s team will also be joining the Board of Dayntee Farms. 

About FAFIN
FAFIN is an agribusiness‐focused private equity fund that aims to transform the agricultural sector in Nigeria. FAFIN’s fund sponsors include the Nigerian government via the Federal Ministry of Agriculture and Rural Development, the German government via KfW Development Bank, and the Nigeria Sovereign Investment Authority. FAFIN has invested in two other companies over the past 18‐months – L&Z Integrated Farms (integrated dairy) and Diamond Pearls Agro Allied (edible oils). FAFIN is managed by Sahel Capital, an agribusiness focused private equity firm. Sahel Capital works extensively with FAFIN’s portfolio companies to strengthen governance, increase operating capacity, and substantially grow their businesses over the subsequent five‐year investment period.

For more information please contact:
Mr. Ayo Alade, Managing Director, Dayntee Farms Limited ‐ ayodele.alade@daynteefarms.com
Mr. Olumide Lawson, Partner, Sahel Capital – olawson@sahelcp.com
Mr. Mezuo Nwuneli, Managing Partner, Sahel Capital – mnwuneli@sahelcp.com

 

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