PCM Capital Partners, managers of the West Africa Emerging Markets Growth Fund (WAEMGF) has invested €4.1m in Ubipharm SA to part fund its African expansion.

Michel Abrogoua, Managing Partner at PCP, said: “We are pleased to provide financial and technical support to an international pharmaceutical distributor seeking to expand its continental presence. We are furthermore proud that this partnership will improve the well-being of the local population.”

The investment is being executed through Ubipharm Development (UD), a newly created subsidiary company which will have an initial presence in Guinea and Madagascar.

The WAEMGF investment of in two capital increases will give the Fund a 49% stake in UD with Ubipharm SA maintaining the majority.

This strategic relationship with the WAEMGF is the first of its kind with an institutional partner.

Gerard Mangoua, one of the founders and current Managing Director of Ubipharm, said: “The financial partnership with WAEMGF will enable Ubipharm increase its distribution capacity into newer markets and expand its business network.”

Ubipharm is a major distributor of pharmaceutical products in Francophone Africa (UEMOA and CEMAC) and the French Overseas Territories (DTOMS).

With a shareholder base comprising more than 1200 pharmacists, a network of 3500 registered clients and 400 suppliers, the Group covers almost all of the pharmaceutical requirements for these markets.

Ubipharm offers best practices and ensures that authentic products are accessible to all.

Group turnover for 2014 was put at €572m as against €442m in 2012.

The group plans to expand in its second phase into the Anglophone markets.

Wilfrid Korsaga, PCP Senior Investment Officer who worked directly on the deal, said: "The Ubipharm network and business model is unique to Africa. At a time when the pharmaceutical market in Africa can be defined by its peculiarities, this partnership aims at improving access to high quality pharmaceutical products."