LeapFrog Investments is spending $22 million to acquire a majority stake in Goodlife Pharmacy, giving East Africa-focused private equity firm Catalyst Principal Partners a full exit from the firm which it first backed in 2014. The deal marks the first realization for Catalyst’s inaugural fund, Catalyst Fund I.
Catalyst, together with strategic partners Africa Chemist and Beauty Care and a seasoned management team, acquired a controlling stake in Mimosa Pharmacy, a platform which was then used to launch a re-branded pharmaceutical chain Goodlife Pharmacy. Since then the company has grown from six stores located in Nairobi and Kenya’s coastal region to number nineteen locations in emerging urban centers in Kenya and Uganda today. Already East Africa’s largest pharmaceutical chain, Goodlife plans to use LeapFrog’s investment to expand its network of stores further to number over one hundred in the next five years.
As well as offering customer health, personal care and beauty care products and services, Goodlife is the first pharmaceutical chain in the region to have introduced consultation centers in all its locations and implement industry practices to alleviate the dispensing of substandard and counterfeit medications. This ability to re-think traditional approaches to solving healthcare problems was part of the firm’s investment attractiveness for LeapFrog.
“The future of healthcare in emerging markets is about looking at a model that will endure for the 21st century,” Felix Olale, LeapFrog’s Co-Head of Healthcare Investments and the Partner who led the deal for the investment company, said.” At the center of this is a focus on consumer-centric and integrated healthcare. Goodlife’s business model delivers on this imperative. It is a pharmacy, a wellness outlet, a diagnostics center, and in the future, it will also be a place where you can access clinicians through telemedicine…”