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Health Plus Announces Leadership Changes, Appoints Chidi Okoro as CTO

Private Equity	3376 VIEWS
Private Equity
3376 VIEWS

Friday, September 25, 2020 / 05:35 PM / By Alta Semper Capital / Header Image Credit: LBS Nigeria

This morning, the Board of Health Plus issued an instruction terminating the appointment of the CEO Mrs. Bukky George and asked Mr. Chidi Okoro to provide interim leadership for the Company as its new Chief Transformation Officer.

The Board has been exploring the optimal way to grow the business for some time, in collaboration with Mrs. George. Unfortunately, we have been unable to reach an agreement, which has hindered the operations of the Company and delayed the implementation of its growth plans. With the onset of the COVID pandemic, the rapid acceleration of the digital economy and the increased relevance of the healthcare sector as a whole, it has become urgent to ensure the Company is optimally positioned to grow and able to take advantage of new and emerging opportunities. As a result, we have taken the strategic decision to change our leadership.

All decisions have been taken in line with contract appointing former CEO, Nigerian law, and no restrictions under Nigerian law apply to these actions.

About Alta Semper Capital LLP

Alta Semper, a private equity manager investing flexible and strategic capital across select African growth markets, announced in 2018 a partnership with Nigeria's leading retail pharmacy chain HealthPlus. Under the terms of the agreement, Alta Semper invested US$18mn into HealthPlus, which was to enable the company expand its retail footprint and enhance its competitive position. Alta Semper specifically invests into market-leading businesses in defensive sub-sectors within the consumer and healthcare verticals.

The healthcare and retail markets in Nigeria are characterised by growing demand, driven by favourable demographics, increased consumer awareness and evolving consumption patterns. Furthermore, Nigeria is home to one of the least penetrated formal retail markets in the world, despite its large and growing population. The retail pharmacy sector is highly fragmented, with many independent drug stores and several patent medicine outlets. Furthermore, given structural challenges with the industry supply chain, counterfeit pharmaceuticals find their way into over forty percent of the retail market, while most wholesale and retail sales across the country are still made through informal markets. Moreover, much of the healthcare infrastructure is confined to major cities, with people living in urban areas having approximately four times as much access to healthcare as those living in rural areas.

The investment into HealthPlus was to enable the Company capture the pent-up demand for high-quality yet affordable healthcare and professional beauty supplies by developing regional distribution centres in commercial hubs across Nigeria, rapidly expanding the Company's footprint across Nigeria as well as developing a wholesale channel and investing in private label and e-commerce.

Healthplus was Alta Semper's first investment in Nigeria.

About HealthPlus Limited

HealthPlus was founded in 1999 by Mrs. Olubukunola Adewunmi (Bukky) George, FPSN, a Nigeria and UK-trained pharmacist with over 25 years of experience in the pharmaceutical industry, who has organically grown the business into the leading pharmacy chain and retailer of beauty supplies in West Africa.

The Company's quest is to provide the Nigerian consumer with high-quality, life-saving and affordable products and services. Furthermore, the Company aims to make a meaningful and lasting impact by contributing its quota to the achievement of universal healthcare coverage and to increasing life expectancy for all Nigerians.

The Company targets a broad base of consumers through the provision of healthcare products such as prescription and over-the-counter medicines, nutritional supplements, natural remedies, home medical equipment, mobility aids and pharmacy services. The Company employs over 700 people which includes 150 pharmacists, with at least two pharmacists dispensing prescription medicines and providing counselling, free health screenings and value-adding pharmacy services at each pharmacy. It operates branches in strategically-located residential areas, shopping centres and airports across 11 of the 36 states in Nigeria. HealthPlus has one of the highest brand recognition and ratings of any consumer company in Nigeria.

The Company's dedication and professionalism has been recognised with several excellence awards including the ICERTIAS Best Buy Award for #1 Pharmacy in Best Price-Quality Ratio 2017, the Nigerian Customer Service Award for Best in the Pharmaceutical Category 2017 and the Nigeria Healthcare Excellence Award (NHEA) 2016, 2015, 2014.

The Deal Advisors in 2018

Alta Semper's legal advisors were Olaniwun Ajayi LP and international law firm Hogan Lovells International LLP.
HealthPlus' financial advisor was CardinalStone Partners and legal advisory was provided by Banwo & Ighodalo.

Related News to HealthPlus and Alta Semper

1. HealthPlus: Attempted Hostile Takeover By Foreign Private Equity Firm - Proshare, Sept 26, 2020

2. 2 years after receiving $18m from Alta Semper Capital, HealthPlus is witnessing a power struggle - Tech Point, Sept 28, 2020

3. Alta Semper Capital Commits US$18mn to HealthPlus, West Africa's Leading Retail Pharmaceutical Chain - The African Private Equity and Venture Capital Association, Mar 27, 2018

4. Project Description - Alta Semper Ilera Fund I Limited (IFC-42586) - Early Warning System, Sept 04, 2019

5. Altasemper.com

6. Healthplus.com.ng