KENYA – CFAO Healthcare, a leader in the African pharmaceutical market, has signed a memorandum of understanding to acquire 30% of Goodlife Pharmacies, East Africa’s leading pharmacy chain, from LeapFrog Investments.
Also known as Eurapharma, CFAO Healthcare is the healthcare division of the CFAO Group and it is a wholesale distributor of quality pharmaceuticals across Africa where it owns and operates subsidiaries in 23 countries.
The strategic partnership is aimed at creating good cooperation between Eurapharma’s wholesale operations and Goodlife’s retail distribution network to give East Africans better access to quality drugs and health services.
It will also allow Goodlife to evolve and transform rapidly in an innovative manner from a chain of traditional pharmacies to a true integrated and omnichannel health center.
The minor acquisition of the leading East African pharmacy chain and its digital e-commerce platform is the first partial sale of a healthcare asset held by LeapFrog Investments, an investor in Goodlife through the LeapFrog Emerging Consumer Fund III launched in 2017.
It is in line with LeapFrog’s mission to partner a leading pharmaceutical distributer in Africa with significant experience and expertise to help Goodlife take new steps in its development.
Moreover, the 30% equity stake will make CFAO Healthcare a key strategic partner for the execution of Goodlife’s expansion plan to reach 250 pharmacies by 2025.
The ambitious plans aim at allowing Goodlife to gain access to 8.5 million patients, half earning between US$2 and US$10 a day for Goodlife to become an African champion in the field of retail pharmacy and health.
CEO of Goodlife Amaan Khalfan further added that the company hopes to supply high-quality, affordable and accessible medicines to the West African market which will generate more job opportunities, better healthcare as well as stronger supply chains.
Founded in 2014, Goodlife is the largest private pharmacy network in East Africa with nearly 100 pharmacies in Kenya and Uganda and access to 1.7 million of patients.
It provides a range of holistic services including laboratory diagnostics and telemedicine services through vital partnerships along with loyalty programs.
“Eurapharma’s investment in Goodlife strengthens our ability to deliver reliable healthcare products and a quality customer experience through our pharmacy network and digital platform during the pandemic,” added Amaan Khalfan.
Additionally, Goodlife intends on working with local Kenyan manufacturers to create additional demand for pharmaceutical products manufactured in Kenya.
The Fortune Impact 20 company also recently raised US$12 million in debt from Proparco, the French development finance agency, in a separate transaction in March 2020.
Liked this article? Subscribe to DealStreet Africa News, our regular email newsletter with the latest news, deals, and insights from Africa’s business, economy, and more. SUBSCRIBE HERE