Synergy Capital Managers through its Synergy Private Equity Fund (SPEF) has invested in Vester Oil Mill, a multiproduct company producing oilseed meals and oilseed crude oils in Ghana.

Vester is one of the top five seed oil mill operators in Ghana evolving from a small scale processing plant in 2002 to a 50MT daily production capacity plant.

The company’s products include soybean, palm kernel nut and Copra (dried coconut kernel) oils.

The investment will enable the company complete its installation of a 20MT/day refinery to process unrefined seed oil to edible oil, undertake the expansion of its business into solvent extraction with lower oil content and healthier food inputs for livestock feed millers and food processors and acquire a feed processing plant.

The promoters of Vester have built a strong local brand which has seen the company develop a competitive edge in the industry in Ghana; with a rejuvenated focus and vision on being a one-stop supplier to the livestock industry.

In addition, the company is pursuing the opportunity to produce edible oils for end users across the West African sub-region and beyond.

Kwasi Nyamekye, promoter and CEO of Vester, said: “The investment has come at an opportune time for the company in its quest to expand and further integrate into the value chain of the oil-seed processing industry.”

“The investment will be vital in enabling us diversify our product lines and increase capacity to serve the unmet demand gap within the West African sub-region. Our vision of becoming a world-class oil-seed processing company serving the West African sub-region is better served with strategic partners who have in-depth knowledge and experience in the region, which SPEF brings on-board. We are delighted with the belief SPEF has in Vester, and aim to work hard to make our dream of becoming the leading oil-seed processing company in the sub-region a reality,” he said.

The investment in Vester is the seventh investment by SPEF and the third investment in Ghana.

Akintoye Akindele, Partner, Synergy Capital Managers, said: “We are very excited about the investment in Vester as it helps to further diversify the SPEF portfolio especially as the agro-allied sector represents one of the fastest growth sectors across the West African region over the coming years.”

“In Vester, we have found an innovative company driven by an experienced manager with proven capacity to grow the business into the leading oil seed processing company in West Africa,” he added.

The fund manater remains very active and is focused on closing a number of additional investments in both Nigeria and Ghana over the coming year, according to Akindele.

“Ghana continues to represent an important market for SPEF as we continue to see very attractive opportunities across numerous industry sectors,” he said.

On this transaction, Synergy worked with the following advisers: The New Practice (TNP) on legal, KPMG Ghana on financial due diligence and MBA Consult Limited, Ghana on Environmental and Safety.