Rana Mamdouh _ Zilla Capital announced the signing of the definitive agreements for a transaction in the Egyptian pharmaceutical sector, represented by the strategic investment of the “RNAF III” fund, affiliated with RMBV, in Atco Pharma for Pharmaceutical Industries.
Zilla Capital stated in its press release issued today that it acted as the exclusive financial advisor to Atco Pharma, and the completion of the transaction remains conditional upon the fulfillment of customary precedent conditions, including obtaining the approval of the Egyptian Competition Authority.
It pointed out that this transaction brings together a pharmaceutical platform built by its founders and investments by RMBV, at a pivotal stage for the sector.
It noted that upon the completion of the transaction, RMBV will inject growth capital to enter into a joint control arrangement over Atco Pharma through a combination of primary and secondary shares, allowing the injection of new capital into the company, while Dr. Ahmed Abou El-Neja, the founder of Atco, will continue to serve as the Chief Executive Officer.
It highlighted that with the joining of RMBV, Atco is poised to enhance its growth across three axes: increasing the number of products it offers in human and veterinary pharmaceuticals, accelerating the launch of new products in the market, and expanding its brand portfolio into new markets regionally.
It added that this partnership represents RMBV's first investment in the veterinary pharmaceutical sector in Egypt, further strengthening its investment presence in the healthcare sector within the Egyptian market.
According to Zilla Capital's statement, Al-Seroo Law Firm acted as the legal advisor to Atco's founders, while Matouk Bassiouny & Hennawy acted as the legal advisor to RMBV.
In this context, Mostafa El-Shennawy, Founder and Co-CEO of Zilla Capital, stated: “Founder-led market leaders form the backbone of the pharmaceutical industry in Egypt, and Atco is one of the strongest. What distinguished this transaction is the alignment between a founder who built a leading company from scratch and an investor who shares his conviction in its prospects.”
He continued: We believe this partnership sets an exemplary model for how founder-led companies can expand in the region without losing the fundamentals that made them successful.
In this context, Dr. Ahmed Abou El-Neja, CEO of Atco Pharma, noted: “Building upon 40 years of excellence and a solid foundation in Egypt, Atco is entering a new chapter with an ambitious vision to become a leading regional and global player in both human and animal health.”
He stated: “We will work hand in hand with RMBV to seize new opportunities, accelerate strategic investments, drive innovation, and expand beyond borders by combining Atco's strengths with RMBV's international expertise. This step is not an exit, but rather an acceleration of our ambitions.”
He added: “Our human cadres, values, and commitments remain unchanged, and the current management team will continue to lead Atco toward this promising new phase of growth.”
Ahmed Badreldin, Managing Partner at RMBV, added: “Atco combines the vision of its founders and a strong management team, alongside established and proven manufacturing and commercial capabilities. The animal health sector constitutes a key pillar for protein supply in the region.”
