Helios Investment Partners has struck its second equity deal this year by inking an agreement to acquire a majority stake in the largest medtech company in Morocco.
The PE firm said Thursday it has struck the control deal with a group led by Abderraouf Sordo that operates in medical devices, invitro diagnostic and pharmaceuticals space via four companies: Techniques Science Santé (T2S), IM Alliance, Cyclopharma and Binarios.
CDG Capital Private Equity (now known as CDG Invest PME) had backed the group flagship T2S in 2016. It had picked up a minority stake at the time and is exiting in this transaction.
Although the deal amount was not disclosed, given Helios’ fund size and sweet spot it may have committed around $50-100 million, it is estimated.
The Moroccan group is the most prominent medical equipment distributor and maintenance provider in Francophone Africa, three times larger than its nearest competitor in the region with revenues of over $100 million. It has distribution agreements with top suppliers including GE Healthcare, Varian, B. Braun, Zeiss and bioMérieux.
Zineb Abbad El Andaloussi, partner at Helios, said: “The consolidation of the four companies forms the largest medtech group in the region, well-positioned to support the strong growth potential of the underpenetrated healthcare market in Francophone Africa.”
She added that the PE firm would look to expand its local presence as also in other African countries in the future.
Brahim Guessous, partner at CDG Invest PME, said: “This investment has exceeded all our expectations in terms of value creation and we are pleased to have contributed to the transformation of a national SME into the undisputed regional leader in the medtech equipment sector. This investment also enabled us to develop a unique expertise in the healthcare sector and we see plenty of investment opportunities to come in this field.”
CDG Invest PME had invested in T2S via its fund Capmezzanine II SCR, a MAD 444 million (€40 million) fund raised in June 2015.
The PE firm chases growth investments in SMEs and mid-cap companies in Morocco and Francophone Africa. It is based in Casablanca and has around €180 million assets under management. It is currently investing its fourth fund targeting equity investments between €5-15 million per transaction.
For Helios, this is the second equity deal after it decided to invest in NBA Africa, which will be the umbrella organisation to conduct the Basketball Africa League (BAL) – a partnership between the NBA and the International Basketball Federation. That deal is directly under Helios Fairfax, a Canada-based investment holding company focused on public and private investments in businesses that primarily operate in Africa. It was established last year via a business combination between Fairfax Africa Holdings and the management company of PE firm Helios Investment Partners.
Last month, Helios also participated in a credit dealwith Africell.