Injaro Agricultural Capital Holdings Limited (IACHL), the impact 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 after a holding period of close to eight years.

In 2015, Injaro invested in Agricare, a Kumasi-based company that manufactures and sells animal feed across Ghana. The company operates a state-of-the-art production facility with a production capacity of 240 tonnes per day. The investment from Injaro aimed to increase the utilisation rate of the company’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 annualised revenue growth rate of 62%. The company also developed an outgrower scheme that currently has access to over 1,000 maize outgrowers, 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, “This exit is particularly gratifying for the Injaro team because, through our investment and support, we rescued a distressed business and preserved an historic Ghanaian brand that was on the verge of disappearing due to lack of financing. The operational improvements and supply chain innovations implemented by our teams enabled us to sustain factory jobs, generate income for local farmers and to realise 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.”

Nick Hutchinson, the managing director of Flour Mills of Ghana Limited commented, “The acquisition of Agricare represents a significant building block in our 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 realise the resulting business opportunities.”

Injaro was advised by N. Dowuona & Company which acted as its legal advisor.