Sahel Capital exits investment in L&Z Farms after 7yrs

Sahel Capital has exited L&Z Integrated Farms Limited, an integrated dairy processing company in Nigeria, according to the company’s statement.

Sahel Capitals’ exit from L&Z has been executed through a management buyout (MBO) led by the founder of L&Z.

L&Z Integrated Farms Limited (L&Z) – a Kano-based company, which is known for yoghurt production, has since 2015 been a portfolio company of Sahel Capital Agribusiness Managers Limited that manages the $65.9 million Fund for Agricultural Finance in Nigeria (FAFIN).

“Asides from the attractiveness of the dairy sector in Nigeria, we partnered with L&Z because we valued the integrity of the founders and their passion for the development of the industry,” said Mezuo Nwuneli, the managing partner of Sahel Capital in a statement.

Read also: How financing, inflation, unfavorable exchange rates deepen developer’s plight

“We are proud to have been a part of L&Z’s incredible growth and success story. L&Z has become a formidable brand in Nigeria’s dairy sector, and we are confident that the company will continue to play a pivotal role in the sector’s evolution over the coming years,” Nwuneli said.

BusinessDay had earlier reported in 2019 that L&Z sought to embrace new investors as Sahel Capital mulled exiting investments with them at the time.

Over the last seven years, Sahel Capital has worked with L&Z to implement a broad range of value-creation initiatives, according to the statement.

As a result of Sahel Capital’s investment in the company, L&Z expanded its dairy processing operations and increased its milking cow herd size. Sahel supported the company in onboarding top finance, operations, and sales talents to support the growth of the business.

This further enabled the company to accelerate its expansion across the country, deepen its distribution, and strengthen its governance process.

With the support, L&Z Farms onboarded two independent directors onto its board. The advice and guidance of the independent directors were crucial for strengthening the institutional structures of the firm.

“We are delighted with our partnership with Sahel Capital. Their strategic and financial support was instrumental to our ability to scale beyond a family business to become one of Nigeria’s leading indigenous integrated dairy farms/processors,” said Muhammadu Abubakar, managing director at L&Z Integrated Farms Limited.