Verod Capital invests in Nigerian pharmacy chain
Verod Capital, a West African private equity firm, has completed the acquisition of a significant minority equity stake in Medplus. The investment is from its latest fund, Verod Capital Growth Fund III, and is part of its broader strategy to deepen access and affordability in the healthcare sector.
Medplus is the largest Nigerian pharmaceutical retail business, with about three decades of successful operations. Medplus offers a robust product portfolio, retailing a variety of essential drugs, beauty products and everyday household items, through its e-commerce platform and across over 79 stores, to a large and growing consumer base.
Commenting on the transaction, Joke Bakare (founder and chief executive officer of Medplus) said, “We are pleased to have Verod Capital as a partner and look forward to working with their team to expand our network of stores across Nigeria and deepen our digital channel to continue providing quality products to our customers and developing new opportunities for growth in Nigeria’s pharmaceutical sector. Verod Capital has extensive experience supporting the development of companies including providing best-in-class environmental, social and governance practices, and we are confident that their resources, network and insights will help us in executing on our strategic growth strategy. We also thank Stanbic IBTC Capital Limited for guiding us efficiently and strategically through this process.”
With the fast-growing urban population, increasing healthy lifestyles and consciousness, better verification to address counterfeit drugs, and favourable regulatory support, Nigeria’s pharmaceutical industry is poised for further growth. Reinforced by these factors, Medplus is well positioned for future growth in a large growing underserved market through its targeted store expansion plans and its digital retail strategy.
“Medplus has a long track record of pharma excellence and is led by an experienced CEO and management team,” said Eric Idiahi, partner at Verod Capital. “We believe in the company’s growth potential and are thrilled about its expansion plans in the traditional and digital channels and in ancillary services, i.e. nutritional and wellness services. We are excited about the opportunity to partner with the team at Medplus in a joint mission to increase healthcare accessibility, reliability and efficiency, and also to contribute to the continued success story of the company.”
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