Old Mutual Private Equity (OMPE) announced the acquisition of a 50% interest in Medhold Group (Medhold), an end-to-end supplier of medical devices.
The transaction has obtained unconditional approval from the Competition Commission in South Africa and is pending approval from the Competition Commission in Zimbabwe.
OMPE is a member of Old Mutual Alternative Investments, which manages over $4.8bn in assets across private equity, infrastructure and various impact funds and has offices in SA, West and East Africa.
Medhold’s product range includes anaesthetic delivery systems, maternal infant care, patient monitoring, cardiology, ventilation, infection control, surgical and electro-surgery equipment, amongst others, which are used to sustain life and support patient care.
This segment of the market has very high service requirements and demands deep clinical engineering expertise and experience, product knowledge and a national footprint to enable full customer service delivery.
Along with its initial investment, OMPE will provide additional growth capital to support the business’s expansion plans locally and in the rest of Africa, to further scale and Medhold’s position in the region.
The partnership will also enhance Medhold’s broad based black economic empowerment credentials through an improved scorecard. Medhold remains 50% owned by the management team.
Partnering
Chumani Kula, investment principal at OMPE said “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”.
Farhad Khan, investment principal at OMPE said there is strong alignment with the management team of Medhold, which is highly regarded in the market place and has demonstrated a long-term track record of growth.
“We believe this to be a very smart way to invest in a defensive and growing healthcare segment, particularly in the rest of Africa. We look forward to working alongside the team to execute on its growth strategy,” said Khan.
