IFC has announced its plans to invest up to $30m in Ascendis Health, a South Africa-based fast growing health and care company selling a portfolio of market-leading brands for animals, plants and humans.

“Demand for better health goods and services is growing rapidly amid rising incomes and aging populations in developing countries, and IFC is committed to bringing affordable high quality healthcare into Africa and other emerging markets,” said Mary-Jean Moyo, head of IFC Manufacturing, Agribusiness, and Services in sub-Saharan Africa.

“This investment fits within IFC’s strategy for improving supply of high-quality medical products in developing countries by helping efficient manufacturers and distributors grow and enter new markets,” she said.

Founded in 2008 and listed on the Johannesburg Stock Exchange (JSE) since 2013, the group’s strategy is based on organic, acquisitive and synergistic growth locally and internationally.

The group is increasingly focused on internationalisation and Ascendis brands are currently exported to more than 50 countries globally.

IFC financing will support the company’s plans to acquire Remedica, a generic pharmaceutical company with a presence in over 100 countries and about 80% of its sales in emerging markets.

Remedica is a major supplier of pharmaceuticals to United Nations agencies and non-governmental organizations active in medical relief.

Ascendis also plans to acquire Scitec, a leading European sports nutrition company that sells its products in nearly 90 countries globally.

The products and distribution networks offered by the three companies complement each other, making it possible for the combined group to offer a broader range of health products to more people who need them.

Remedica will be acquired for apprpxomately R4.4bn (€260m) in addition to a maximum earn-out of c.R1.3bn (€75m) after three years, whereas Scitec International will be acquired for R2.9bn (€170m).

“We are excited to have IFC as a long-term strategic partner”, said Karsten Wellner, CEO of Ascendis.

“We are impressed with IFC’s global network of relationships across a diverse range of stakeholders and we look forward to working together with them, capitalizing on their global pharmaceutical expertise as they help us grow and expand our global footprint”.

IFC is the world’s largest multilateral investor in private healthcare, managing an active portfolio of about $1.3bn worth of health investments.