EGYPT – Affirma Capital and StonePine ACE Partners Limited have entered an agreement to jointly invest US$20 million for a significant minority stake in Nerhadou International for Pharmaceuticals and Nutraceuticals.
Nerhadou is one of the largest and fastest-growing nutraceuticals and pharmaceutical players and the first to introduce the oral dispersible film (ODF) technology in Egypt.
The transaction closing is pending regulatory approvals, including the Egyptian Drug Authority (EDA) and satisfaction of certain conditions agreed between the parties.
Renaissance Capital served as the exclusive financial advisor on behalf of Affirma Capital and StonePine, with White and Case acting as the legal advisor.
ADIB Capital, the investment banking arm of ADIB Egypt, acted as the lead sell-side advisor on behalf of Nerhadou, while Al Tamimi and Company served as the legal advisor.
“We believe that their investment in Nerhadou will accelerate the company’s growth plans, solidify its market position, and bring the Company to IPO standards,” said Mohamed Shalaby, CEO of Nerhadou.
“We look forward to working with Nerhadou and to leveraging our global franchise to help them grow, both organically and inorganically,” said Taimoor Labib, Founding Partner and Head of MENA & Chairman of Africa at Affirma Capital.
With the investment proceeds, Nerhadou plans to expand its existing operations and accelerate the launch of various innovative pipeline products in the Egyptian and regional markets.
Nerhadou become the first joint investment by Affirma Capital and StonePine in Egypt and will also support the broader Egypt-focused investment strategy.
The Egyptian pharmaceutical corporate has been identified by both Affirma Capital and StonePine as a “unique player” due to its significant presence and dominant market share across key nutraceutical product subsegments.
The pioneer ODF manufacturer has an attractive product pipeline comprising a number of innovative nutraceutical and pharmaceutical products.
Nerhadou strategic objective is to be positioned amongst the leaders in providing top quality products for human nutrition, beauty & health as well first brand names of pharmaceuticals to the Middle East market
The strategy is based on being number one in every single market in which it competes and Nerhadou has already reached leadership in some therapeutic segments that it operates.
Affirma Capital and StonePine are keen to support regional companies with strong management teams.
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