MOROCCO—Africa’s largest mezzanine fund manager, Vantage Capital has reached an agreement with Promamec Health in a deal worth US$ 33 million for a significant minority stake in the Moroccan company.
Promamec is one of Morocco’s few manufacturers of medical consumables and health care equipment distributors.
The deal will facilitate the exit of AfricInvest and will enable Promamec to finance its development agenda.
It is expected to facilitate its ambitious growth prospects that involve increasing its production capacity, broadening its product offering, and strengthening its position in Sub-Saharan Africa.
The deal is conditional on the approval of the Morocco Competition Authority which is still reviewing it with a fine-tooth comb.
Founded in 1981 by the Lahlou family, Promamce has built and pioneered the manufacturing of medical consumables and distribution of top-of-the-line medical equipment in the Kingdom of Morocco.
Promamec reported revenue of US$5.4 million in 2022 which represented a significant jump in revenue for the same period in the year before.
Promamec has other significant partnership deals with some of the largest global medical manufacturers, including Konica Minolta, Phenix Optics, and Autobio Diagnostics among others.
In a press release, Mr. Naoufal Lahlou, CEO of Promamec, commented, “We are delighted to welcome into our new shareholders at Vantage Capital, a leading pan-African investment firm.”
The transaction is one of 34 across four generations of funds across eleven African countries that Vantage Capital has undertaken since it began operations in 2001.
In 2020, Vantage Capital announced another deal in Morocco worth US$28.0 million for equity in the hospital group Clinique Internationales du Maroc Group.
Its ever-expanding investment portfolio especially in healthcare indicates South African-based Vantage Capital’s positive outlook on the growth of the sector in Africa.
Mr. Luc Albinski, Executive Chairman at Vantage Capital added, “We are very pleased to announce the signing of this new deal in Morocco. We do not doubt Promamec’s ability to play a key role in further improving the quality of Morocco’s healthcare system.”
According to the International Trade Association, the Moroccan medical device market is estimated at US$236 million, with US$191 million in imports in 2021.
The publicly available data published by the International Trade Association highlighted that China, Germany, and the United States supply most of the equipment.
Notably, the government of Morocco has prohibited the import or sale of second-hand or refurbished medical devices and equipment as per a February 2017 law, to improve equipment quality.
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