French development finance institution, Proparco has partnered with Mauritian conglomerate, IBL Group to acquire Harley’s, a leading distributor of pharmaceutical products and medical equipment in East Africa.
The deal valued at €13 million (Sh5 billion) gives the two a majority shareholding in Harley’s
The French fund aims to expand the supply of medicine and health products in Kenya, Uganda and Tanzania and possibly other neighbouring countries.
The funds will also support Harley’s growth plan, job creation and better access to pharmaceutical products in East Africa.
This comes months after IBL bought an undisclosed stake in Harley’s as part of a consortium that took control of the company.
It marked the latest investment in Kenya for IBL which last year acquired a 26.32 per cent stake in supermarket chain, Naivas Limited for $100 million (Sh15.3 billion) also as part of a consortium.
Proparco was also part of the consortium that acquired a combined 40 per cent stake in Naivas for $151.9 million (Sh23.3 billion).
Proparco head of equity for Africa and the Middle East Damien Braud said Harley’s is a historical player in the pharmaceutical sector, making a big impact on the lives of Kenyans, Tanzanians and Ugandans.
“Proparco is very proud to support Harley’s and more generally the pharmaceutical and healthcare sector in East Africa, which we believe are key components of development in the region,” Braud said.
Harley’s supplies pharmaceutical products and medical equipment, which include drugs, hospital beds, intravenous poles, bedside cabinets, examination and delivery beds as well as stainless steel buckets.
The company’s suppliers include Bayer, GlaxoSmithKline and Mercl and Roche with operations in Nairobi, Mombasa, Eldoret, Dar es Salaam and Kampala.
Harley’s started operations in 1953 as a retail chemist and was acquired by its current management in 1975.
The company is a family business that has grown and expanded over 70 years.
Source: The Star
