LeapFrog splashes Sh2.2bn for majority stake in GoodLife

Private Equity firm LeapFrog Investment has bought a majority stake in pharmacy retail chain GoodLife for Sh2.2 billion.

The investment targets expansion of the growing pharmacy retail business with other investors looking to come into the market.

GoodLife, which was previously called Mimosa, offers health care products as well as an array of beauty and personal care products.

According to LeapFrog Managing Director Dr Felix Olale, the venture into the healthcare business is part of its plans to diversify its portfolio by targeting consumers with affordable products.

“By moving into health, we are taking a unique approach and addressing the challenge from both sides investing in both health insurance companies and health service providers,” Dr Olale said.

The pharmacy retailer serves 600,000 customers from 19 outlets in East Africa, LeapFrog said, calling the deal the largest direct investment in East African retail pharmacy so far.

With the injection of capital, GoodLife plans to expand its operations across the region.

The pharmacy already has a presence in Uganda.

GoodLife co founder Dr. Josh Ruxin said the pharmacy will also introduce specialized consultancy services to better cater to consumers.

One of the plans is to partner with a telecommunications company to introduce phone based medical services.

“We have recently piloted tele-medicine in order to advance diagnostics so that patients can find out more quickly whether they need to be in hospital or seek further clarification from a doctor. That is a service that is going to be available across GoodLife pharmacies,” Dr Ruxin said.

GoodLife is now expected to compete with the Fanisi Capital backed Haltons Pharmacy that has been on an aggressive expansion spree.

Increased spend on both private and public healthcare has seen demand for healthcare has seen the pharmaceutical industry grow into a multi billion shilling business, underlining the renewed interest from private equity companies.

By 2014, the industry was valued at Sh33.5 billion.