(Ecofin Agency) - The UK development finance agency CDC Group joined the European Bank for Reconstruction and Development (EBRD) and the British private equity investor Development Partners International (DPI) to acquire a majority stake in Egyptian generic drug manufacturer Adwia Pharmaceuticals. According to local media, they acquired 99.6% of the company’s capital for $250 million.
The European financial institution and investor DPI each contributed $75 million, while CDC Group committed $100 million. The operation seeks to finance Adwia Pharmaceuticals' growth in Egypt.
The company plans to modernize its manufacturing assets, introduce higher value-added products, and improve its health and safety standards and product quality.
The three partners purchased 90% stake from Adwia's president, Hossam Taher and his family, and acquired another minority share from the healthcare professionals who control 10% of the company.
Prior to this agreement, the Africa-focused private equity firm DPI alone bid $150 million to acquire the Egyptian company. But the offer was rejected as Adwia Pharmaceuticals deemed the amount too small, given the growth of the pharmaceutical industry due to covid-19.