mPharma, a Ghanaian firm that manages prescription drug inventory for pharmacies and their suppliers, is buying Kenya’s second-largest pharmacy chain, Haltons.
In an unprecedented deal for the African startup ecosystem, mPharma, a Ghanaian firm that manages inventories for pharmacies is buying Haltons, the second largest pharmacy chain Kenya.
According to Quartz Africa report sighted by YEN.com.gh, mPharma will enter the East Africa regional market for the first time and the six-year-old company will take control of the 20 Haltons stores split between Nairobi and Mombasa.
The deal is still subject to regulatory approval but mPharma is reportedly working on completing a $12 million Series B funding round led by 4DX, an Accra/San Francisco venture capital firm, and Nairobi-based Novastar Ventures.
mPharma was founded by Greg Rockson to significantly improve the efficiency of pharmaceutical supply chains in African countries.
Its proprietary Vendor Management Inventory (VMI) system is already being used in over 250 pharmacies in Ghana, Nigeria, Zambia and Zimbabwe.
Rockson reportedly said the unusual deal came about as part of conversations to market mPharma's VMI platform to Haltons.
However, mPharma realised there was an opportunity to prove just how much the efficiencies of managing both the front end and back end could help African pharmacies drive down their big costs of inventory.
mPharma is taking control of Haltons from Fanisi Capital, a Mauritius-based private equity firm, but senior management at Haltons will retain a stake in the business.
While terms of the deal are not public, mPharma is believed to have already paid under $5 million for the chain.
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