PE firm Phatisa leads MBO of South African vaccine maker Deltamune

 PE firm Phatisa leads MBO of South African vaccine maker Deltamune

Private equity firm Phatisa said Friday it has acquired 100% of South Africa-based Deltamune, together with the biotechnology company’s management, from HL Hall & Sons Investments.

Phatisa didn’t disclose the value of the management buyout (MBO), but it is likely to be in the $10-20 million range.

The PE firm made the investment from its second food fund, Phatisa Food Fund 2, which made a final close with $143 million in committed capital last year. This is believed to be the debut deal from the fund.

The deal comes months after Phatisa lost out to Acorn for another buyout deal in the animal health sector.

Deltamune develops and manufactures vaccines for animals in the food market, particularly poultry. More recently, it expanded its vaccination range to address the ruminant market, catering to cattle and sheep.

It produces autogenous vaccines specifically for local African diseases and virus variants as well as registered vaccines for diseases such as Avian Influenza, Coryza, Newcastle Disease, Salmonella, Anthrax and Lumpy Skin.

The company was established in 1995. Women make up more than half of its total workforce and leadership team.

“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,” said Rinolan Moodley, partner at Phatisa.

“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.”

Stefan Swanepoel, Deltamune’s managing director, said: “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 transaction has received all regulatory approvals.

Advisors to Phatisa include DLA Piper, IBIS, Step Advisory and Webber Wentzel.

Vivek Sinha

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