Founded in 1976 in Baranquilla, Colombia, the Group develops, produces and markets pharmaceutical drugs and advanced drug delivery technologies (i.e. softgel capsules). The Group has seven production facilities in Colombia, Venezuela, Brazil, and El Salvador, distribution capabilities in eleven countries and 4,600 employees. IFC intends to invest in Unimed Pharmaceuticals Limited, the principal holding company of the Group, and its sister company Sofgen Pharmaceuticals LLC. The Group is majority-owned by several members of the Minski family.

The proposed IFC investment consists of an equity investment of up to USD 90 million into the Procaps Group to pursue acquisitions, invest in softgel technologies and increase efficiency of its production plants.

The Group’s headquarter are in Barranquilla, Colombia. IFC’s proceeds will be used across Colombia, Brazil, El Salvador and Ecuador.

This is a category B project according to IFC’s Policy on Environmental and Social Sustainability because the Environmental, Social and Health & Safety (ESHS) impacts related to the investment are limited, site specific, covers a footprint of existing brownfield assets, and the associated E&S impacts can be managed through the implementation of appropriate mitigation measures. IFC’s review did not identify any significant adverse impacts or high-risk exposures.

Key E&S risks and issues for this project are typical of those for pharmaceutical production and distribution. These include: adequate development and implementation of a comprehensive EHS and social management system; labor standards, worker rights, and implementation of occupational health and safety (OHS) measures; adequate management of air pollution/hazardous materials/ hazardous waste/wastewater; project’s impacts on the community health, safety and security and the use of armed security.