Proparco, a development financing institution backed by the French Government, has bought a 20 per cent stake in Bangalore-headquartered Strides Arcolab’s African front-end arm, valuing the African operations at about $ 60 million.
A press release from Strides stated that the proceeds of the equity sale, $12.50 million, will be used to create additional manufacturing infrastructure in key markets in Africa and to build a regional company with the philosophy of ‘In Africa for Africa.’
Strides has been present in Africa and contributing to the improvement of healthcare by manufacturing and marketing a wide range of lifesaving antibiotics, lifestyle disease related curatives and nutrition/ relief providing formulations.
Sinhue Noronha–CEO, Africa Operations in a statement said, “Africa is the most attractive business opportunity of tomorrow and this partnership with Proparco further strengthens our commitment to providing quality and timely medication to Africans. Creation of additional manufacturing infrastructure will also provide large employment opportunities and economic growth to all associated with the Strides’ African Business and reinforces our belief that Life is Most Precious.”
Strides has strategically organised its front-end African business into a Strategic Business Unit. It has grown from a sale of $10 million to $27 million in the last four years, with a team of over 200 dedicated people, a portfolio of over 700 product registrations and five subsidiaries. The business operates in the branded generics and OTC generic segments and has foot prints in 23 Sub-Saharan African countries, excluding South Africa. Its first African manufacturing plant is located at Lagos Nigeria and is in operation for the last four years.
Established in 1977, Société de Promotion et de Participation pour La Coopération Economique (Proparco – The Investment and Promotions Company for Economic Cooperation) is a development finance institution based in Paris, France, that is jointly held by the Agence Francaise de Developpement (AFD), a development finance institution of the French government, and private shareholders. PROPARCO’s mission is “to be a catalyst for private investment in developing countries which targets growth, sustainable development and reaching the United Nations’ Millennium Development Goals.” In 2010, Proparco disbursed around $ 2.7 billion for 70 projects in 28 countries.
EP News Bureau
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