GHANA – Injaro Agricultural Capital Holdings Limited (IACHL), an investment fund managed by Injaro Investments, has sold its stake in Ghana’s oldest animal feed producer, Agricare, to Flour Mills of Ghana Limited (FMGL).
This strategic sale represents a full exit from Agricare, a Kumasi-based company that manufactures and sells animal feed across Ghana, after a holding period of close to eight years.
The company operates a state-of-the-art production facility with a production capacity of 240 tonnes per day.
Injaro invested in Agricare in 2015 in a bid to increase the utilization rate of Agricare’s production facility, develop its raw material supply base, and unlock growth by expanding its product lines and entering new local markets.
Following the investment and with the active involvement of Injaro, Agricare recorded an annualized revenue growth rate of 62%.
The company also developed an outgrower scheme that currently has access to over 1,000 maize out-growers, restructured its management team, and refined its production processes and systems to improve profitability.
Speaking about the exit, Jerry Parkes, the co-founder, and CEO of Injaro Investments said that the exit is particularly gratifying for the Injaro team.
“Through our investment and support, we rescued a distressed business and preserved a historic Ghanaian brand that was on the verge of disappearing due to lack of financing,” Parkes stated.
He added that the operational improvements and supply chain innovations implemented by the teams enabled Agricare to sustain factory jobs, generate income for local farmers and to realize a cash return for dozens of Ghanaian shareholders whose investment in Agricare had yielded little liquidity for decades.
“This is indeed a case study on the power of purpose-driven investments to create value for multiple stakeholders. We wish FMGL and the Agricare team every success as they take the baton to achieve even greater feats,” he concluded.
On his side, Nick Hutchinson, the managing director of Flour Mills of Ghana Limited said that the acquisition of Agricare represents a significant building block in the company’s journey to remain Ghana’s leading supplier of a portfolio of quality animal nutrition products, meeting the ever-evolving needs of poultry and livestock farmers.
“We are very excited about the potential presented by the addition of Agricare branded offerings to our range of Sankofa poultry feeds and look forward to partnering with value chain stakeholders to realize the resulting business opportunities.”
Injaro was advised by N. Dowuona & Company which acted as its legal advisor.
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