Ata Capital backs MBO of South African medical device firm

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Johannesburg-based Ata Capital has backed the management buyout of a medical devices supplier from JSE-listed Ascendis Health. The buyout of Respiratory Care Africa (RCA) is being funded by a mix of equity and debt totaling R450 million, or approximately $29.4 million. RCA’s Management and Ata Fund III are investing the equity in the deal while banking group Absa Africa is financing the debt component of the transaction. With an 80% stake, Ata’s fund is now the business’s majority shareholder.

As part of the deal Mamedupi Matsipa, Ata’s CEO, and Lelo Rantloane, Ata’s founder, take seats on RCA’s board of directors. The private equity firm is backing the South African firm confident in its growth prospects. Founded in 1998, RCA supplies respiratory, monitoring, radiology, and other medical equipment used to treat patients both in hospitals and at home, as well as the technical support, services, and consumables needed to use the devices. Within hospitals, the firm’s products are used in high care units such as intensive care units, operating theatres, and maternity wards.

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