Private equity firm LeapFrog Investments has sold its entire stake in Goodlife Pharmacy to a Toyota-owned firm, marking its exit from the retail pharmacy chain after nine years.
LeapFrog, which acquired Goodlife in late 2016 after buying out Catalyst Fund in a Sh2.2 billion deal, sold a 30.1 percent to medicine distributor CFAO Healthcare in 2022 and has now sold the remaining 69.9 percent stake to the same entity.
While the value of these transactions has not been disclosed, they could be worth billions of shillings, given the 2016 valuation and the fact that LeapFrog expanded Goodlife’s store count in Kenya and Uganda from 19 in 2017 to 145 by the end of last year.
CFAO Healthcare, which now has full ownership of the Nairobi-headquartered pharmacy, is the healthcare division of Paris-based CFAO Group, which is a subsidiary of Toyota Tsusho Corporation.
“By acquiring 100 percent of Goodlife Pharmacy, we are accelerating our transformation into a global healthcare player. Together, we will enhance accessibility, service quality, and innovation in the pharmaceutical sector,” said Jean-Marc Leccia, CEO at CFAO Healthcare.
Goodlife has been expanding through a mix of setting up new stores as well as acquiring existing ones. In January 2020, it bought assets belonging to Maghreb Pharmacy.
Over the years, LeapFrog has invested further to grow the chain into a provider of over-the-counter medicines, as well as beauty and personal care products, and digital and home delivery services.
“We are incredibly proud of Goodlife’s journey and its role in expanding healthcare access across East Africa,” said Dr Biju Mohandas, LeapFrog Investments partner and head of global healthcare investments.
“This transaction marks LeapFrog’s full exit from Goodlife. CFAO Healthcare is the right long-term partner to amplify Goodlife’s impact and drive the next phase of its expansion.”
Goodlife was founded in 2014 as Mimosa Pharmacy. Its growth was supported by financiers such as World Bank’s International Finance Corporation and French development finance institution Proparco.
“With the support of LeapFrog Investments, we have made remarkable progress in fulfilling our mission. The partnership with CFAO Healthcare represents a unique opportunity to expand this mission, bringing even greater impact and value to our customers and communities,” said Goodlife Kenya CEO Justin Melvin.
The deal cements CFAO Healthcare’s strategic expansion into East Africa’s retail health market. CFAO Healthcare is involved in the distribution of pharmaceutical products in at least 24 countries in sub-Saharan Africa.
Goodlife Pharmacy’s main competitors in Kenya include Haltons Pharmacy, Pharmart, MyDawa, HighChem and Fahari Pharmacy, all of which offer retail or digital access to medicines and wellness products.
The CFAO deal comes at a time when Kenya is experiencing rising demand for decentralised healthcare services, driven by a growing middle class, tech-enabled care models and ambitions for universal health coverage.
