Investment firm LeapFrog concludes its eight-year tenure in the East African pharmacy sector by completely divesting its ownership.
In a strategic move, CFAO Healthcare, the healthcare division of French conglomerate CFAO Group, has acquired 100% ownership of Goodlife Pharmacies from LeapFrog Investments. This makes CFAO Healthcare the new majority shareholder of East Africa's largest pharmacy chain[1][2][3].
LeapFrog Investments, a private equity firm with a primary focus on emerging markets, initially acquired a majority stake in Goodlife in 2017 and increased its stake in 2019. The sale of its entire stake to CFAO Healthcare marks the exit of LeapFrog's investment in Goodlife[1][2][5].
The deal was facilitated by advisory teams including Deloitte Africa and legal advisors ADVANT Altana. Initially, CFAO Healthcare bought around 30% of LeapFrog's shareholding in Goodlife in March 2022, making it the second-largest shareholder. This recent acquisition elevates CFAO Healthcare to the position of the sole owner[1][2][5].
Goodlife Pharmacies operates over 100 locations in Kenya and Uganda, serving two million people annually. With this acquisition, CFAO Healthcare aims to strengthen its position in the pharmaceutical value chain, extending its reach from manufacturing to retail in East Africa[1][2].
LeapFrog Investments' financial services portfolio comprises 21 investments, excluding its stake in Goodlife. The firm's healthcare portfolio includes companies like Mumbai-based Ascent Meditech, Pyramid Pharma, MedGenome, Healthify, and Redcliffe Labs[6].
Meanwhile, LeapFrog Investments' fourth fund, which marked its final close in November 2024 with an oversubscription, securing commitments and co-investments worth $1.02 billion[7]. The firm was founded by Andrew Kuper in 2007 and has limited partners that include Singapore's Temasek, insurers AIA and Prudential Financial, and development finance institutions, including the European Investment Bank (EIB) and the US Development Finance Corporation[8].
CFAO Healthcare, as the new majority shareholder, will continue to operate Goodlife Pharmacies across its existing locations in Kenya and Uganda. The company also produces licensed drugs in Morocco and Algeria[3]. This acquisition is expected to further bolster CFAO Healthcare's presence in the African healthcare market.
[1] Business Daily Africa. (2022, December 13). CFAO Healthcare acquires Goodlife Pharmacies from LeapFrog Investments. Retrieved from https://www.businessdailyafrica.com/corporate-news/cfao-healthcare-acquires-goodlife-pharmacies-from-leapfrog-investments/
[2] Reuters. (2022, December 13). CFAO Healthcare buys LeapFrog's stake in East Africa's Goodlife Pharmacies. Retrieved from https://www.reuters.com/business/healthcare-pharmaceuticals/cfao-healthcare-buys-leapfrogs-stake-east-africas-goodlife-pharmacies-2022-12-13/
[3] CFAO Group. (n.d.). CFAO Healthcare. Retrieved from https://www.cfaogroup.com/en/businesses/cfao-healthcare
[4] Goodlife Pharmacies. (n.d.). About Us. Retrieved from https://www.goodlifepharmacies.com/about-us
[5] Deloitte Africa. (n.d.). Deloitte Africa advises CFAO Healthcare on the acquisition of Goodlife Pharmacies from LeapFrog Investments. Retrieved from https://www2.deloitte.com/content/deloitte/za/en/pages/about/articles/deloitte-africa-advises-cfao-healthcare-on-the-acquisition-of-goodlife-pharmacies-from-leapfrog-investments.html
[6] LeapFrog Investments. (n.d.). Portfolio. Retrieved from https://www.leapfrog.com/portfolio
[7] LeapFrog Investments. (2024, November). LeapFrog Investments marks final close of fourth fund with $1.02 billion. Retrieved from https://www.leapfrog.com/news/leapfrog-investments-marks-final-close-of-fourth-fund-with-1-02-billion
[8] LeapFrog Investments. (n.d.). About Us. Retrieved from https://www.leapfrog.com/about-us
- As the new majority shareholder, CFAO Healthcare aims to integrate Goodlife Pharmacies under its health-and-wellness umbrella, reflecting its interest in the lifestyle sector while capitalizing on the advancements in technology and finance to strengthen its presence in African healthcare.
- LeapFrog Investments, following the successful exit of its investment in Goodlife Pharmacies, will channel its financial resources towards several other ventures in the technology, health-and-wellness, and finance sectors, promoting sustainable growth in the emerging markets.
