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Egyptian pharmaceutical group ATCO Pharma for Pharmaceutical Industries has signed definitive agreements for a strategic investment by RMBV’s RNAF III fund. The deal covers both human and veterinary medicines. However, the financial terms were not disclosed.
Completion depends on customary conditions, including approval from the Egyptian Competition Authority (ECA). Once it closes, RMBV will take joint control alongside the existing owners through a mix of primary and secondary shares.
The primary shares bring new money into ATCO. As part of the agreement, founder Dr. Ahmed Abu Al-Naga will stay on as Chief Executive Officer. The deal gives RMBV its first position in Egypt’s veterinary pharmaceuticals sector. It adds to the firm’s wider healthcare investments in the country.
Zilla Capital was ATCO Pharma’s sole financial advisor. ADSERO acted as legal counsel to ATCO’s founders, and Matouk Bassiouny & Hennawy advised RMBV.
“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. This is not an exit; it is an acceleration of our ambition. Our people, values, and commitments remain unchanged, and our existing management team will continue to lead ATCO into this exciting new era of growth,” said Dr. Ahmed Abu Al-Naga, CEO, ATCO Pharma.
ATCO is an Egyptian pharmaceutical company founded in 1986 by Dr. Moustafa Abu Al-Naga and Eng. Mohammed Abu Al-Naga. It specialises in human and veterinary medicines and has a modern manufacturing facility that meets international standards for quality and safety.
The company offers over 150 products, including human medicines like Forflozin and Tussistop, and veterinary products like Tilmicoral and Tylvamyco. The company exports to more than 10 countries, including Saudi Arabia and Nepal, and its R&D team is working on more than 160 new drug candidates.
ATCO plans to use the new capital in three areas. It will widen its range of human and veterinary medicines, bring new products to market faster, and take its brands into more markets across the region.
“Founder-led champions are the backbone of Egypt’s pharmaceutical industry, and ATCO is one of the strongest among them. 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,” said Moustafa El-Shenety, Founder and Co-CEO, Zilla Capital.
Zilla Capital is a prominent investment bank operating primarily in the Middle East and Africa. It provides various financial services, including advising on mergers and acquisitions, raising equity and debt, structured finance, and corporate restructuring.
The platform focuses on delivering customised financial solutions for complex transactions across various industries.
RMBV is an independent investment firm focused on Egypt and North Africa. It has invested more than $1 billion across healthcare, education, consumer goods and services, and financial services. The firm has returned more than $1.5 billion to its investors across 13 realisations.
The announcement comes a couple of months after the African Development Bank (AfDB) approved a $15 million equity investment in the RMBV North Africa Fund III.
“ATCO pairs founder vision and a strong management team with proven manufacturing and commercial depth. 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,” said Ahmed Badreldin, Managing Partner, RMBV.
