The exit comes on the heels of a final offer price of USD 178 mn after successfully boosting Macro Group’s financial performance and enhancing its ESG practices since 2017.
10 February 2022 | London, UK
Alta Semper Capital LLP (“Alta Semper” or the “Firm”) announces that it has successfully completed its exit from Egypt’s market-leading cosmeceuticals manufacturer, Macro Group Pharmaceuticals (“Macro Group” or the “Company”). Shares of Macro Group began trading 10 February 2022 in a Reg S, 144 A initial public offering under the symbol MCRO:CA on the Egyptian Exchange. The final offer price stood at EGP 4.85 per ordinary share or 2.8 bn EGP (equivalent to USD 178 mn).
Since Macro Group became a portfolio holding of Alta Semper’s in 2017, Alta Semper has supported the Company in nearly doubling its market share. Today, its diversified portfolio encompasses 112 products across a variety of high-growth therapeutic areas. Alta Semper aided in boosting Macro’s top line to USD 27 mn by the end of 9M 2021, 3x its 2017 revenues, while ensuring profitability and increasing its EBITDA and bottom-line to USD 11 and USD 10 mn respectively during the same period, nearly 3x its 2017 levels.
“We are proud of our successful journey with Macro Pharmaceuticals and its tremendous growth on the financial, operational, organizational and social impact level during the tenor of our partnership,” said Afsane Jetha, co-founder and CEO of Alta Semper. “It has been a pleasure working alongside such a skilled and motivated management team as they established a leadership position in Egypt’s burgeoning cosmeceutical space, and we congratulate them on their continued success.”
Alta Semper Managing Director and Head of North Africa, Ahmed Rady, who also serves as Vice Chairman of Macro Group added “Since our investment in 2017, we have worked alongside Macro’s relentless management team to supercharge sustainable growth, expand operating margins, and lay the foundations for a more impressive future. We have successfully grown gross profit margin from 63% in 2018, to 80% in 9M 2021, grown EBITDA margin from 21% in 2018 to 41% in 9M 2021, and have achieved an impressive EBITDA CAGR of 89% over the period of 2018 to 2020. In an industry that is witnessing transformational growth, we believe Macro Group will continue to shape what is a thriving and rapidly expanding market.”
Alta Semper’s shareholder base has played a strategic role in improving Macro Group’s financial capabilities, as well as its sustainability and governance practices. The Firm’s investors include institutions such as the International Finance Corporation, the investment arm of the World Bank, IDI Emerging Markets, and Mbuyu Capital Partners, in addition to expert individuals such as former Citigroup Chairman Richard Parsons and businessman and philanthropist Ronald Lauder, heir to the Estée Lauder cosmetics company.
“It is gratifying to see this positive investment outcome for a company dedicated improving quality of life for millions of Egyptians” said Richard Parsons, Founding Shareholder and Chairman of the Investment Committee of Alta Semper. “We have a longstanding commitment to investing on the African continent for positive change. The success of Macro is emblematic of the type of outcome we seek.”
Ronald Lauder, a Founding Shareholder of Alta Semper, added that “Our mission as investors is to advance entrepreneurial activity across Africa in a manner that serves as a catalyst for sustainable development and broadly improves quality of life on the continent.”
Alta Semper has overseen Macro Group’s Environmental, Social and Governance enhancements, which has resulted in increased female workforce representation with women comprising 42% of total staffing and occupying 18% of senior management positions. Community outreach through Medical Convoys in collaboration with the Egyptian Ministry of Health has directly benefitted over 8,000 patients since 2017. With an eye on Sustainable Development Goals, the Company has been able to deploy training programs outside of the urban center of Cairo, across more rural areas in Upper Egypt and the Delta. In tandem, Environmental practices have been improved through energy efficiency initiatives, waste minimization and switching to raw materials with a lower environmental impact. Macro remains committed to enhancing its ESG practices as well as striving to contribute to the enhanced achievement of the Sustainable Development Goals in the years to come.
Macro Chairman and Co-founder, Dr. Ahmed El Nayeb, concluded “I am extremely proud of the organization we have built over the last 18 years, from its humble beginnings to becoming the market leader in Egypt’s cosmeceutical space and the first of its kind to go public in Egypt. The IPO marks yet another significant milestone for our business and we will continue to deliver on our vision of regional leadership within the cosmeceuticals and nutraceuticals space.”
EFG Hermes acted as sole global coordinator and Renaissance Capital acted as joint bookrunner for the offering. White & Case LLP acted as legal advisors to the issuer and the selling shareholders.
Contact Alta Semper
|Mark Kenlock / +44 7546 601218||Alta Semper Capital|
|[email protected]||35 Berkeley Square, First Floor|
|London W1J 5BF|
About Alta Semper Capital
Alta Semper Capital is a private equity manager active across growth markets. The Firm was founded by Afsane Jetha, Ronald Lauder, (Chairman of Clinique Laboratories, a subsidiary of the Estée Lauder Company, and a former US ambassador to Austria), Richard Parsons (Chairman of Rockefeller Foundation, former Chairman of Citigroup and Chairman/CEO of Time Warner Group) and is dedicated to sustainable investing in the healthcare, consumer and technology sectors across growth markets.
Learn more at www.altasemper.com.