ARM Capital Partners, the manager of ARM Private Equity Fund, and the International Finance Corporation say they have made a $9.5m equity investment in Boulos Foods and Beverages Limited.

According to the financial institutions, the decision to invest in the newly established non-alcoholic beverages manufacturer, which is based in Ibadan, Oyo State is aimed at encouraging the growth of the food processing sector of the economy.

A statement on the deal explained that ARM Capital Partners provided $6m of the amount, while IFC provided the remaining $3.5m.

Specifically, the statement said the equity investment would facilitate the expansion of the company, which currently produces fruit juices and other non-alcoholic drinks, milk products, and tomato paste for the Nigerian market.

The Founder and Chairman, Boulous Foods and Beverages, Mr. Boulos Boulos, was quoted in the statement as saying, “BFB is tapping into the huge potential of local food and beverage processing to help reduce food imports. We aspire to attain a strong market position and become one of Nigeria’s leading food processing companies.

“Partnering with IFC and ARM Capital Partners will help us to create new markets and accelerate our growth trajectory. We, also, hope to eventually source most of our raw materials from small holder farmers.”

On his part, the Managing Director, ARM Capital Partners, Vlassis Liakouris, explained that the company was focused on the provision of capital to encourage the expansion of high growth companies operating in attractive sectors of the economy.

He added, “We are partnering with the founders of the company and IFC to invest in Boulos Foods and Beverages with a view to helping the company become a world-class manufacturer of food and non-alcoholic beverages. We are pleased that our investment will result in substantial employment both for the company and its supply chain.

According to the Regional Industry Director, IFC, German Vegarra, one of IFC’s top priorities in Nigeria is supporting agribusiness, which is the largest single contributor to its GDP as well as its largest employer, especially in rural areas.

Punch