Vantage Capital signs €30 million deal with Promamec

Vantage Capital, the largest mezzanine debt fund manager on the African continent, announced today that it has signed legal agreements for a €30 million equity investment to acquire a significant minority stake in Promamec, which will allow the exit of the AfricInvest investment fund, and to finance the company's growth plan. The transaction is subject to the approval of the Moroccan competition authorities.

Founded in the early 1980s by the Lahlou family, the company was one of the pioneers of local manufacturing of medical consumables, and has gradually become one of the leaders in the distribution of medical consumables and equipment in Morocco.

This investment will allow Promamec to finance its development plan which consists in increasing its production capacity, broadening its offer by launching new product ranges, and strengthening its positioning in sub-Saharan Africa.

Mr. Naoufal Lahlou, CEO of Promamec, said: "We are delighted to welcome Vantage Capital, a leading pan-African investment fund, in our round of financing. Vantage Capital will support us over the next few years in our strategy to diversify our product portfolio, increase our production capacity and, most importantly, expand our geographical presence in Sub-Saharan Africa. The Vantage team is fully 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 on the verge of taking a major step forward with the generalization of the health insurance system. We are convinced of Promamec's ability to play a key role in improving the quality of the Moroccan healthcare system."

Mr. Driss Benabdeslam, Associate Partner at Vantage Capital, concluded: "We are very proud to participate in the writing of a new important chapter in the history of a Moroccan leader in the distribution of medical consumables and equipment. Since our first interactions with Promamec's teams, we have been delighted to note the great expertise and strong cohesion of the entire team. Our financing will make a significant contribution to improving access to healthcare in Morocco by supporting one of the Kingdom's leading suppliers of medical products."

This transaction represents Vantage Capital's 34th investment, across four generations of funds and in eleven African countries. Promamec also marks Vantage Capital's third investment in Morocco, strengthening its presence in one of its key target markets.

Vantage Capital was advised by Derenia Capital, which acted as financial advisor on the transaction, and by Clifford Chance (in Morocco), which acted as legal advisor. PwC (in Morocco) and Webber Wentzel (in South Africa) acted as tax advisors, PwC and Deloitte (in Morocco) as financial advisors, Strategy& (a member of the PwC network in Morocco) as advisors on the commercial side, and Ibis Consulting (in Morocco) reviewed the environmental impact.

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