Vantage Capital, a Mezzanine Fund Manager, Acquires Promamec for €30M

Vantage Capital, Africa’s largest mezzanine fund manager, has announced the signing of legal agreements relating to a €30 million equity investment for the acquisition of a significant minority stake in Promamec, which will allow the private equity fund AfricInvest to exit and fund growth capex. The deal is subject to Moroccan competition authorities’ approval.

The Lahlou Family founded the company in the early 1980s, and it has since grown into one of Morocco’s leading medical consumables and equipment distributors.

This investment will allow Promamec to fund its development strategy, which includes increasing production capacity, broadening the company’s product offering by launching new product categories, and strengthening its position in Sub-Saharan Africa.

Promamec’s CEO, Mr. Naoufal Lahlou, commented:

“We are delighted to welcome into our shareholding Vantage Capital, a leading pan-African investment firm. Vantage Capital will accompany us over the next few years in our strategy to diversify our current product range, increase our production capacity and, above all, expand our geographical presence in sub-Saharan Africa. The Vantage team is totally aligned with our vision.”

Mr. Luc Albinski, Executive Chairman at Vantage Capital, added, “We are very pleased to announce the signing of this new deal in Morocco. The Kingdom is in the process of achieving a major milestone, namely, the generalization of the health insurance system. We have no doubt about Promamec’s ability to play a key role in further improving the quality of Morocco’s healthcare system.”

Mr. Driss Benabdeslam, Associate Partner at Vantage Capital, concluded, “We are very happy to participate in an exciting new chapter for a Moroccan leader in the distribution of medical consumables and equipment. Since our first interactions with Promamec’s teams, we have been pleased by the depth of expertise and the strong cohesion between team members. Our funding will make a meaningful contribution to the improvement of healthcare access in Morocco by supporting one of the Kingdom’s main medical suppliers.”

This transaction represents Vantage Capital’s 34th investment across four generations of funds with its portfolio of investments spread across eleven African countries. Promamec also marks Vantage Capital’s third investment in Morocco, thus reinforcing its presence in one of its key target markets.

Vantage Capital was advised by Derenia Capital who acted as financial advisor for the transaction, and by Clifford Chance (in Morocco) who acted as its legal counsel. PwC (in Morocco) and Webber Wentzel (in South Africa) provided tax advice, PwC & Deloitte (in Morocco) were the financial advisors, Strategy & (part of the PwC network in Morocco) provided commercial advice, and Ibis Consulting (in Morocco) reviewed the environmental impact.

Promac and AfricInvest were advised by Allen & Overy (in Morocco) who acted as their legal counsel and by Smyle Finance who acted as financial advisor. A&B Associés acted as legal counsel to the Lahlou family.

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