Africa Capitalworks acquires majority stake in East African pharma manufacturer
Africa Capitalworks acquires majority stake in East African pharma manufacturer
Africa Capitalworks has acquired a majority stake in Cipla Quality Chemical Industries Limited (QCIL) from the Cipla Limited Group (Cipla).
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Africa Capitalworks, an investment company that deploys permanent equity capital in strategically-selected sectors across sub-Saharan Africa (excluding South Africa) has acquired a majority stake in Cipla Quality Chemical Industries Limited (QCIL) from the Cipla Limited Group (Cipla). QCIL, which is listed on the Uganda Securities Exchange is the largest pharmaceutical manufacturer in East Africa and one of only three World Health Organisation prequalified manufacturers in sub-Saharan Africa. As part of the transaction, QCIL’s Ugandan founders will be increasing their interest in the company.
The company will be reverting to its original name of Quality Chemical Industries Limited.
Emmanuel Katongole, chairman and co-founder of QCIL said, “We are excited to announce our partnership with ACW, as we believe their complementary skillset, strategic insights and global relationships will reinforce our commitment to improving the region’s self sufficiency through the local manufacture of high-quality, affordable medicines. We also appreciate Cipla’s sustained commitment to Uganda and the region, as enshrined in the agreements that secure QCIL’s access to technology and govern a responsible transition.”
Ajay Pal, CEO of QCIL noted, “Our partnership with Africa Capitalworks will accelerate the implementation of our growth plans and allow us to expand our critical medicines range and geographical presence in both public and private markets. While there will be some once-off costs associated with the transaction, we have worked closely with Africa Capitalworks and Cipla to agree certain ongoing cost savings and a smooth transition.”
Beth Mandel, managing partner and co-founder of Africa Capitalworks, added that “Africa Capitalworks’ mission is to identify and partner with leading and well-managed mid-market businesses, like QCIL. We are excited about the opportunity to partner with the Ugandan founders and management and to assist QCIL to make an even more meaningful impact by contributing further to the growth and development of the healthcare sector in Africa.”
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