Phatisa, together with management, has acquired 100% of South African-based biotechnology company Deltamune from HL Hall & Sons Investments, for an undisclosed sum.

Rinolan Moodley, Partner at Phatisa, said: “We are backing a highly experienced and technically astute management team, with certified production facilities and innovative products that help corporate and commercial farmers improve their livestock health and resilience. Infectious diseases have a direct impact on food security and the livelihoods of commercial farmers – Deltamune’s products reduce these losses – thereby increasing food availability, which is a core Phatisa investment principle. We are deeply aligned with management’s vision and look forward to partnering with them, as they continue to pioneer new products and technologies that combat diseases across Africa.”

Established in 1995, Deltamune plays a trusted role in veterinary and public health, by developing and manufacturing vaccines used in production animals for the food market – particularly poultry.

More recently, the company has expanded its vaccination range to address the ruminant market (cattle, sheep etc.).

It is anticipated that this buyout and capital injection will enable Deltamune’s continued innovation and growth into both production animal verticals, plus enable geographic expansion into the sub-continent.

Deltamune produces: autogenous vaccines – creating and adapting vaccines specifically for local African diseases and virus variants; registered vaccines – manufacturing registered vaccines, addressing diseases such as Avian Influenza, Coryza, Newcastle Disease, Salmonella, Anthrax and Lumpy Skin, amongst others.

The investment was made from Phatisa’s second food fund - Phatisa Food Fund 2, which has over $140m in committed capital and seeks investments across the African food value chain – whilst balancing commercial returns with impact objectives.

Core to Phatisa’s impact goals is SDG 5 (gender equality) and the Fund has been selected as a ‘2X Challenge investment’ as a testimony to Phatisa’s significant commitment to advance women’s economic empowerment.

Through its investment in Deltamune, Phatisa rises up to the 2X Challenge with female representation at Deltamune being more than 50% of their total workforce as well as  more than 50% of their leadership team.

Dr Stefan Swanepoel, Deltamune Managing Director, said: “Our passion is to enable sustainable food production for all people, through the power of biologicals. This partnership with Phatisa represents a new milestone for our business, enabling us to continue investing into vital veterinary solutions for our clients and customers. The management team and I wish to extend our sincere thanks to HL Hall & Sons who have been supportive shareholders to Deltamune for many years. We now look forward, with excitement, to growing and owning our business with Phatisa.”

Pete Backwell, CEO of HL Halls & Sons, added: “We have had a marvellous relationship with the Deltamune leadership team over many years as they have built a business based on competence, passion and integrity. I wish Stefan and his colleagues much success as they embark on their next phase of growth.”

Advisors to Phatisa included: DLA Piper, IBIS, Step Advisory, and Webber Wentzel.