Aspen Pharmacare Holdings Limited is pleased to announce the conclusion of a deal for the acquisition of 60% of the share capital of Shelys Africa Limited, with operations in East and Central Africa with effect from 01 May 2008.
Shelys Africa Limited is the holding company of a group of East African pharmaceutical companies (“the Shelys Group”). The principal operations include Shelys Pharmaceuticals in Tanzania and Beta Healthcare International in Kenya. The Shelys Group reported consolidated revenue of USD 38 million for 2007.
Shelys Pharmaceuticals was established in 1984 and holds a strong position in the Tanzanian market. Products are currently exported into other parts of East and Central Africa and initiatives are in place to expand further into the Central African market. The manufacturing facility in Dar-es-Salaam has recently been upgraded and is capable of manufacturing solids, liquids, capsules and penicillins. Shelys Pharmaceuticals’ diverse product portfolio covers key therapeutic groups, including:
Beta Healthcare has its origins with UK’s Boots International and joined the Shelys Group in 2003. The company has a product portfolio comprising predominantly of OTC’s and some branded pharmaceutical products. Beta Healthcare’s domestic customer base is spread throughout Kenya. Export sales are generated from other parts of East and Central Africa, including Tanzania, Uganda, Rwanda and Congo.
The Shelys Group offers good manufacturing capabilities and a strong brand presence in the Central and East African regions. The group’s product offering is complimented by Aspen’s diverse product range and its strong distribution network facilitates immediate access into large parts of East and Central Africa. Furthermore, Aspen is able to offer extensive manufacturing and commercial expertise to the Shelys Group.
The deal creates a tremendous opportunity for Aspen to leverage its strengths and extend its reach into Africa. This is aligned to the stated objective of providing quality, affordable medication throughout Africa.
Aspen Group CEO, Stephen Saad, stated: “We are proud to have formed a strategic partnership with an established pharmaceutical leader in Africa. The Shelys Group shares our views on healthcare for Africa and offers excellent distribution capabilities”.
Shelys Africa Group Chairman, Mr Jayesh Shah, commented that the tie up with Aspen would create a formidable group in the pharmaceutical sector in the East and Central African region and that this partnership would allow Shelys to greatly benefit from Aspen’s wide product range, technical expertise and market coverage.