14 January 2022
Phatisa, together with management, has acquired 100% of South African-based biotechnology company Deltamune from HL Hall & Sons Investments, for an undisclosed sum.
Established in 1995, Deltamune plays a trusted role in veterinary and public health, by developing and manufacturing vaccines used in production animals for the food market – particularly poultry. More recently, the company has expanded its vaccination range to address the ruminant market (cattle, sheep etc.).
It is anticipated that this buyout and capital injection will enable Deltamune’s continued innovation and growth into both production animal verticals, plus enable geographic expansion into the sub-continent.
- Autogenous vaccines – creating and adapting vaccines specifically for local African diseases and virus variants.
- Registered vaccines – manufacturing registered vaccines, addressing diseases such as Avian Influenza, Coryza, Newcastle Disease, Salmonella, Anthrax and Lumpy Skin, amongst others.
The investment was made from Phatisa’s second food fund – Phatisa Food Fund 2 (the Fund), which has over US$140 million in committed capital and seeks investments across the African food value chain – whilst balancing commercial returns with impact objectives.
Core to Phatisa’s impact goals is SDG 5 (gender equality) and the Fund has been selected as a ‘2X Challenge investment’ as a testimony to Phatisa’s significant commitment to advance women’s economic empowerment. The 2X Challenge is a commitment by G7 development finance institutions to drive women’s economic empowerment. Through it’s investment in Deltamune, Phatisa rises up to the 2X Challenge with female representation at Deltamune being >50% of their total workforce as well as >50% of their leadership team.
Rinolan Moodley, Partner at Phatisa, commented:
“We are backing a highly experienced and technically astute management team, with certified production facilities and innovative products that help corporate and commercial farmers improve their livestock health and resilience. Infectious diseases have a direct impact on food security and the livelihoods of commercial farmers – Deltamune’s products reduce these losses – thereby increasing food availability, which is a core Phatisa investment principle. We are deeply aligned with management’s vision and look forward to partnering with them, as they continue to pioneer new products and technologies that combat diseases across Africa.”
Dr Stefan Swanepoel, Deltamune Managing Director, said:
“Our passion is to enable sustainable food production for all people, through the power of biologicals. This partnership with Phatisa represents a new milestone for our business, enabling us to continue investing into vital veterinary solutions for our clients and customers. The management team and I wish to extend our sincere thanks to HL Hall & Sons who have been supportive shareholders to Deltamune for many years. We now look forward, with excitement, to growing and owning our business with Phatisa.”
Pete Backwell, CEO of HL Halls & Sons, concluded:
“We have had a marvellous relationship with the Deltamune leadership team over many years as they have built a business based on competence, passion and integrity. I wish Stefan and his colleagues much success as they embark on their next phase of growth.”
The transaction has received all regulatory approvals. Advisors to Phatisa included: DLA Piper, IBIS, Step Advisory, and Webber Wentzel.
Phatisa is a leading African private equity fund manager. Established in 2005, the firm focuses on investments across the African food value chain, plus affordable housing.
Phatisa believes that financial performance & impact are mutually inclusive. And persistently seeks to achieve the best of both worlds by driving impact & returns – concurrently – across its investment processes.
By balancing commercial returns with impact objectives, Phatisa positively affects the lives & livelihoods of African people, whilst attracting institutional & development investors to the continent.
In short, Phatisa provides more than capital.
Phatisa is currently investing Phatisa Food Fund 2, with US$143 million in committed capital. The Fund seeks majority and significant minority investments into companies across the African food chain where it can create sustainable impact, and long-term returns.
Phatisa Food Fund 2 investments include:
- Rolfes, an agrochemicals and food ingredients business based in South Africa, and
- FES, a leading equipment and integrated contracting services provider to the agricultural sector, largely in Malawi and Zambia.
Pravisha Rampal, Head of Investor Relations Telephone + 27 (0) 11 463 1920 Email firstname.lastname@example.org
Chelsea Wilkinson, Corporate Communications Email email@example.com
- Management buyout of Deltamune, a vaccine manufacturer, providing comprehensive solutions to the animal health industry – improving both food safety and food security
- Investing for growth to reduce diseases in Africa