Old Mutual Private Equity (OMPE) will buy 50% of end-to-end medical device supplier Medhold for an undisclosed amount.
Investment principal at OMPE Chumani Kula said the investment would boost Medhold, which was founded in 1988 and is a supplier of medical equipment to hospitals.
“We have been looking for years for opportunities in the medical space. Medhold is an excellent business and we can help them expand their product offering and their business across Africa,” he said.
The 50% purchase has obtained unconditional approval from the Competition Commission, and is pending approval from the Competition Commission in Zimbabwe.
OMPE will also provide capital to support Medhold’s expansion plans locally and into the rest of Africa.
“Partnering with management teams we like, trust and admire in businesses with a clear and strong suite of competitive advantages and an exciting growth opportunity set, are core pillars of our investment strategy,” said Kula.
“We fully support Medhold’s vision of improving the quality of life on the African continent and we see a meaningful opportunity to provide growth capital in order for the business to expand its footprint nationally and across the rest of the African continent,” he said.
Medhold CEO Matthew Stephens said: “As we enter this next growth phase of our business, we are delighted to join forces with a partner of high calibre such as OMPE, who we are commercially and culturally very aligned with,” he said.
OMPE’s Fund IV has done seven deals, four of them in the mid-market field. It is a member of Old Mutual Alternative Investments, which manages more than $4.8bn in assets across private equity, infrastructure and funds.