UAE – Mubasher: NBK Capital Partners, an alternative investments firm that provides flexible growth capital to mid-sized companies in the Middle East, North Africa, and Turkey (MENAT) region, has closed on its acquisition of Polymedic, a Moroccan generics manufacturing company,
The transaction marks NBK Capital Partners' first deal in Morrocco and brings its investments across six regional healthcare companies to more than $170 million, according to a press release on Monday.
By means of the deal, NBK Capital Partners and Jordan’s Foursan Capital Partners II will now own a majority stake in Polymedic, while the pan-African private equity firm, AfricInvest, will exit the investment.
Polymedic’s CEO, Mohamed Houbachi will retain a significant stake and will continue serving as the CEO and will collaborate with NBK Capital Partners and Foursan Group on the company’s next stage of growth.
Moreover, the acquisition builds on the growth of the generic drugs manufacturing business across the MENA region, which is expected to grow at 6% annually over the next five years.
Expected to reach around $2 billion by 2020, the Moroccan pharmaceutical sector is the sixth-largest market in Africa. The domestic market will continue growing thanks to expanding nationwide health insurance coverage and support for local drug manufacturers.
In this context, executive partner at AfricInvest, Brahim El Jai, said, “In partnering with Polymedic, we have been pleased to support the company’s growth into a strong and sustainable business with best-in-class management and a clear vision for continued success. We look forward to Polymedic’s bright future as it begins its new partnership with NBK Capital Partners.”
It is worth noting that Attijariwafa Bank Morocco and Attijariwafa Bank Middle East (Dubai) served as the transaction’s arranger, facility agent, and bookrunner.
The transaction was advised by Naciri & Associes – Allen & Overy while Freshfields Bruckhaus Deringer, Asafo & Co, Dentons, and Clifford Chance acted as the legal advisors for NBK Capital Partners and Polymedic, respectively.
