RMBV’s RNAF III Acquires 50% Joint Control Stake in Egypt’s ATCO Pharma in $50M Growth Deal
The North Africa-focused private equity firm establishes its entry into Egypt’s veterinary pharmaceutical sector through a combined primary and secondary share transaction co-led by Zilla Capital.
Dr. Ahmed Abu Al-Naga, Chief Executive Officer of ATCO Pharma
CAIRO — North Africa-focused private equity manager RMBV, acting through its third flagship vehicle RMBV North Africa Fund III (RNAF III), has signed definitive agreements to acquire a 50% equity stake in Egyptian drugmaker ATCO Pharma for Pharmaceutical Industries S.A.E. in a growth transaction valued at $50.0 million (~EGP 2.47 billion).
The transaction is structured under a joint control model combining primary growth equity injection with secondary share acquisitions. Zilla Capital acted as the sole financial advisor to ATCO Pharma and its founders, while completion remains subject to customary closing conditions and regulatory clearance from the Egyptian Competition Authority (ECA).
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Deal Structure & Capital Allocation
The transaction combines institutional growth capital with founder leadership to accelerate regional expansion:
Ownership Structure: RMBV enters into a 50% joint control partnership alongside founder Dr. Ahmed Abu Al-Naga, who will continue in his executive capacity as Chief Executive Officer.
Primary Capital Directives: Fresh capital will fund portfolio expansion across human and animal health,accelerate product time-to-market, and support cross-border commercial scaling across regional export markets.
Founded in 1986 by Dr. Moustafa Abu Al-Naga and Eng. Mohammed Abu Al-Naga, ATCO Pharma represents one of Egypt's established domestic pharmaceutical platforms:
Product Portfolio: Manufactures and distributes over 150 pharmaceutical products, spanning human healthcare formulations (including Forflozin and Tussistop) and veterinary pharmaceuticals (including Tilmicoral and Tylvamyco).
R&D Pipeline: Features an active research and development pipeline of more than 160 active molecules under development.
Export Operations: Maintains export channels across more than 10 international markets, including Saudi Arabia and Nepal.
Sector Strategic Positioning: Marks RMBV's inaugural investment footprint within Egypt's expanding veterinary pharmaceutical market.
Executive Statements
"Founder-led champions are the backbone of Egypt’s pharmaceutical industry, and ATCO is one of the strongest among them," stated Moustafa El-Shenety, Founder and Co-CEO of Zilla Capital. "What set this transaction apart was the alignment: a founder who built a leading business from the ground up, and an investor who shares his conviction about how far it can go. We are proud to have brought them together, and we believe this partnership sets a benchmark for how founder-led businesses in the region can scale without losing what made them successful."
"Building on 40 years of excellence and a strong foundation in Egypt, ATCO is entering a new chapter with a bold vision: to become a leading regional and global player in human and animal health," added Dr. Ahmed Abu Al-Naga, Chief Executive Officer of ATCO Pharma. "Together with RMBV, we will unlock new opportunities, accelerate strategic investments, drive innovation, and expand beyond borders, combining ATCO’s strengths with RMBV’s international expertise. This is not an exit; it is an acceleration of our ambition."
"ATCO pairs founder vision and a strong management team with proven manufacturing and commercial depth," commented Ahmed Badreldin, Managing Partner of RMBV. "Animal health underpins the region’s protein supply, and we are proud to partner with the founders and their team as we support them in building a regional champion in veterinary and specialty human medicines."
Mariam Samak
