Phatisa, the private equity group with interests in Africa-focused food and agriculture businesses, has helped fund and structure a management buyout of biotechnology company Deltamune, a manufacturer of animal vaccines.
The private equity firm said in a statement on Friday that it had partnered with Deltamune’s management to acquire 100% of the business from HL Hall & Sons Investments, for an undisclosed sum. HL Hall & Sons is a family-owned group of businesses with farming roots going back to 1890 in the Mbombela (Nelspruit) region, which operates businesses spanning fresh produce, property and financial services.
Deltamune, which was established in 1995, produces vaccines for farm animals destined for the food market. While the company has traditionally focused on vaccines for the poultry industry it has recently expanded its range of vaccines to the ruminant market, which includes animals such as cattle and sheep. Phatisa said the buyout of Deltamune will inject capital that will enable the company to expand its production of vaccines as well as extend its reach into other parts of Africa.
“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, a 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.”
Phatisa made the investment from its second food-focused fund, the Phatisa Food Fund 2, which has already committed more than $140m (R2.15bn) to investments across the African food value chain and continues to seek new opportunities in that segment. The Phatisa Food Fund 2 has already made prior investments into Rolfes Group, which supplies chemicals for the food and agriculture industries, as well as a range of other businesses spanning fertiliser and packaging as well as earthmoving and farm equipment.
Deltamune currently manufactures registered vaccines targeted at diseases such as avian influenza, coryza, Newcastle disease, salmonella, anthrax and lumpy skin. The company also produces autogenous vaccines, which involves adapting vaccines to address African diseases and virus variants. Phatisa says its investment in Deltamune has received all regulatory approvals.
“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,” said Dr Stefan Swanepoel, MD of Deltamune.
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