Vantage Capital (www.VantageCapital.co.za), Africa’s largest mezzanine fund manager, announced today that it has signed legal agreements relating to a €30 million equity investment for the acquisition of a significant minority stake in Promamec, which will facilitate the exit of the private equity fund AfricInvest, and fund growth capex. The transaction is conditional upon the approval of the Moroccan competition authorities.

Founded in the early 80s by the Lahlou Family, the company has pioneered the local production of medical consumables and in the process has grown into one of Morocco’s leading medical consumables and equipment distributors.

This investment will enable Promamec to finance its development plan that involves increasing the company’s production capacities, broadening its product offering by launching new product categories, and strengthening its positioning in sub-Saharan Africa.

Mr. Naoufal Lahlou, CEO of Promamec, 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 34^th 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.

Promamec 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.