Amethis in Southern African pharma deal
Private equity firm Amethis has acquired a minority stake in Avacare, a distributor and manufacturer of pharmaceuticals and healthcare consumable products, mainly operating in Southern Africa.
Avacare was founded in 1996 by Dr Vikramkumar Naik, an anesthesiologist born in Zimbabwe. From a local disposable distribution company created in Harare, Avacare has successfully become a pan-African pharmaceutical distributor and manufacturer operating across a large number of African countries including South Africa, Namibia, Botswana, Zimbabwe, eSwatini, Lesotho, Zambia and Kenya. Avacare sells over 9,000 products supported by about 1,300 employees and achieved a turnover of $200 million in FY 2021. Avacare also has access to 32 warehousing facilities, 47 sales offices and 15 manufacturing facilities across Africa.
Thanks to strategic partnerships Avacare has also become one of the leading distributors of anti-retroviral (ARV) drugs in Southern Africa, playing a key role in the fight against HIV in the most affected region in the world and home to more than 50% of the estimated worldwide population living with HIV. In addition to its strong positioning in the distribution of innovative ARVs, the group offers a large and diversified portfolio of pharmaceutical products aimed at addressing illnesses such as hypertension, mental health, tuberculosis, diabetes, cancer, and more.
In addition to pharmaceutical products, the group also has a strong presence in healthcare consumables, particularly in the Southern African region.
“To welcome Amethis as a partner is an exciting new chapter in the journey for Avacare. We are looking forward to working with them to further expand and strengthen our footprint on the African continent and to expand our range of products both in existing and new markets,” said Dr Naik, the founder and chairman of Avacare. He further added, “Amethis’ focus and understanding of the African continent brings a unique value proposition to the partnership and will contribute to assisting Avacare’s African expansion through relationships, insights, and knowledge, all of which are unique to Africa.”
“We are very proud to invest in a leading regional pharmaceutical distributor and manufacturer such as Avacare which plays a decisive role in providing access to affordable and innovative treatments in Africa and in the improvement of healthcare and quality of life among low-to-middle income populations in the continent. In addition, we strongly believe in Avacare’s strategy to further expand its manufacturing activities in a context where the African continent must build-up and reinforce its production capabilities to address the increasing local demand for medicines,” stated Khady Koné-Dicoh, partner at Amethis who led the investment in Avacare. “Avacare is well-positioned to tap into the growing healthcare market in Africa and has demonstrated a strong track record and resilience to economic challenges and the sanitary crisis,” commented Khady Koné-Dicoh.
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