As pressure in the livestock farming industry grows to strengthen local supply chains and reduce reliance on imported products, South Africa’s only manufacturer of animal active pharmaceutical ingredients (APIs) is entering a new chapter of growth and expansion.
This comes as Chemical Process Technologies (CPT), a Pretoria-based manufacturer of APIs used in the formulation of animal health products, has gained a new investor as shareholder. The acquisition also marks an exit for pan-African alternative investment firm, EXEO Capital, after four years of supporting CPT’s growth trajectory and helping transform the business into an attractive acquisition opportunity. EXEO’s Fund II invested in CPT.
Founded on the philosophy that Africa should build globally competitive businesses in strategically important sectors, EXEO Capital partners with high-growth companies across the food, agribusiness, education, and wellness sectors. Through its investment fund and proprietary investment vehicles, the firm invests in businesses with the potential to scale, create long-term value and strengthen critical value chains across the continent, while also focusing on strengthen communities, support sustainable development and contribute to environmental impact.
CPT represented a natural fit for this strategy. The company occupies a unique position in the market, manufacturing APIs used to combat internal and external parasites in livestock and other animals. By producing these inputs locally, CPT helps reduce dependence on imported products, shortens lead times and supports a more resilient animal health sector.
EXEO Capital’s Agri‑Vie Fund II initially invested in CPT in April 2022, acquiring a minority stake before subsequently increasing its shareholding to a majority position through additional growth capital. At the time, the investment thesis centred on localising production, supporting import replacement and expanding the company’s footprint across African markets.
“CPT is a prime example of our approach to investing in specialised businesses where targeted capital, strategic support and operational improvements can unlock meaningful value,” says Denham Wiercx, Senior Associate at EXEO Capital. “From the outset, we were attracted to the company’s technical expertise, its role in local manufacturing and the opportunity to support a business operating in a highly specialised sector with significant barriers to entry.”
During the investment period, EXEO worked closely with management to support every aspect of the business. Capital was invested to upgrade CPT’s facilities to meet Good Manufacturing Practice (GMP) standards, enabling access to new customers and markets. The firm also helped strengthen CPT’s governance and operational performance through improved performance management systems, enhanced organisational structures, management support and ESG initiatives, including robust waste-management processes.
These interventions proved particularly important during a challenging period for the agricultural sector. Following a downturn linked to adverse weather conditions, CPT successfully returned to growth and has delivered record operational performance over the past 18 months.
“Agri-Vie has been a supportive and constructive partner, helping us unlock opportunities that would have been difficult to pursue on our own,” says Gerrit van der Klashorst, Executive Director at Chemical Process Technologies. “The investment enabled us to strengthen our operations, upgrade our manufacturing capabilities and build a stronger foundation for future growth. We are proud of what has been achieved during the partnership and excited about the opportunities that lie ahead.”
EXEO Capital and the CPT shareholders will retain their interests in CPT Pharma, which focuses on the development of APIs for human health applications. This business is being advanced as a separate long-term growth platform aimed at supporting the localisation of pharmaceutical manufacturing in Africa.