Edge Growth in South African pharma distribution deal
The Vumela Fund, established by FNB Business and Edge Growth, today announced a new partnership with Rand Pharmaceutical Distributors that will see the expansion and growth of this innovative 100% black-owned and managed company that services independent pharmacies, private practices and small clinics.
Rand Pharm was purposely based in a historically disadvantaged township area and provides employment to over 45 residents in the locality. All of its employees – including senior management – live in the same township area and the company actively promotes and invests in the local community and its social development. However, despite 20 years of industry experience, Rand Pharm was struggling with the availability of growth capital to expand its business.
Rand Pharm operates from one warehouse that serves the independent retail pharmacy market, dispensing to doctors, hospitals and clinics, as well as emerging markets in the townships (spaza shops and small supermarkets). It offers a complete range of generic medicine from pharmaceutical companies including Aspen, Adcock Ingram, Cipla, Sun Pharma, Pharmadynamics, Biotech Labs and more, currently supplying clients in Gauteng, Free State, Limpopo, Mpumalanga and North West Province.
“Vumela sees an opportunity to support an acquisition that will boost capacity and create new partnerships that will result in sustained long-term growth,” says Vuyiswa Nzimande, Edge Growth principal and lead dealmaker. “Rand Pharmaceutical Distributors have a longstanding history in the wholesale sale and distribution of pharmaceuticals, and we are excited to support a company that invests in its people and local community.”
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