MOROCCO — Vantage Capital, Africa’s largest mezzanine fund manager, has finalized its acquisition of a significant minority stake in Promamec for up to €30 million (approximately US$33 million) in equity investments.
The latest capital injection to Promamec is anticipated to finance its ambitious growth prospects that involve building a new production plant and broadening its portfolio by launching new product categories in the healthcare space.
Welcoming the new shareholders, Mr. Naoufal Lahlou, Chief Executive Officer of Promamec, said: “With Vantage Capital’s support, we aim to execute our ambitious growth plan. Since our very first discussions, Vantage Capital has demonstrated its total alignment with our vision.”
This investment will enable Promamec to increase its production capacity, diversify its current product range, and strengthen its geographical presence in sub-Saharan Africa.
The latest deal marks Vantage Capital’s third investment in Morocco as the Kingdom’s healthcare sector is undergoing massive development buoyed by public and private investments.
This transaction represents Vantage Capital’s 35th investment across four generations of mezzanine debt funds with its portfolio of investments spread across eleven African countries.
In 2020, Vantage Capital announced another deal in Morocco worth US$28 million for equity in the hospital group Clinique Internationales du Maroc Group.
Its ever-expanding investment portfolio especially in the healthcare sector indicates the fund manager’s positive outlook on the growth of key target markets in Africa.
On his part, Mr. Luc Albinski, Executive Chairman of Vantage Capital, stated: “We are very enthusiastic about accompanying Promamec in achieving its ambitions and contributing to the improvement of healthcare in the Kingdom of Morocco.”
Moreover, the close of Vantage Capital’s equity investment in Promamec has facilitated the exit of the private equity fund AfricInvest.
The deal was conditional on the approval of the Morocco Competition Authority which was still reviewing it with a fine-tooth comb.
Promamec has now sold a minority stake in its medical distribution business to Vantage Capital for up to €30 million (approximately US$33 million) in equity investments.
Consequently, Promamec will use part of the funds invested by Vantage Capital to finance its next phase of development.
This investment is expected to help Promamec’s implementation of its strategic plan to scale its size in the local production of medical consumables in the coming years.
Commenting on the successful acquisition, Mr. Driss Benabdeslam, Associate Partner at Vantage Capital, said: “We are very happy about this investment in one the Kingdom’s main medical suppliers. It is great to know that our funds and strategic support will be dedicated to a company operating in such a key sector.”
Promamec will disburse some of this money to revitalize domestic manufacturing, further cementing its position as one of the key players across sub-Saharan Africa.
Founded by the Lahlou family, Promamec is one of Morocco’s few manufacturers of medical consumables and healthcare equipment distributors.
Promamec has built and pioneered the manufacturing of medical consumables and distribution of top-of-the-line medical equipment in the Kingdom of Morocco.
Speaking on future plans, Mr. Driss Benabdeslam underscored: “We are pleased to partner with a highly seasoned and committed team, with whom we look forward to taking Promamec to the next level. We would like to thank the Lahlou family for their trust and willingness to welcome us as new shareholders.”
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