LeapFrog Investments has formally exited its nearly decade-long investment in Goodlife Pharmacy, handing over full ownership to CFAO Healthcare in a deal that sees East Africa’s leading pharmacy chain transition into the hands of a long-standing partner.
The exit, announced on July 29, 2025, marks the final divestment from an asset first acquired by LeapFrog in 2017, after an initial acquisition cost of approximately Sh2.2 billion, and follows a partial stake sale in 2022 to CFAO Healthcare.
CFAO Healthcare officially completed the acquisition of the remaining shares in Goodlife Pharmacy, consolidating its 100% ownership of the company. The development builds on the prior 30% stake acquired in 2022, ensuring full control over the retail chain’s operations across Kenya and Uganda.
The move is expected to fast-track CFAO’s evolution into a pan-African retail healthcare powerhouse, drawing on its extensive distribution and pharmaceutical manufacturing capabilities across 24 African countries and six French territories.
Since its founding in 2014 (initially known as Mimosa Pharmacy before rebranding), Goodlife has grown into the region’s largest retail pharmacy platform, expanding from 19 outlets to approximately 150 stores, and serving more than 2 million customers annually by the time of the exit.
Under LeapFrog’s leadership, the firm invested in supply chain traceability, digital platforms, loyalty programs, and diversification into diagnostics and telemedicine efforts that helped scale operations and establish brand trust among emerging consumer markets.
LeapFrog Global Head of Healthcare, Dr. Biju Mohandas, praised the partnership, noting that “with its more than 70‑year history and rich legacy of operating in Africa, CFAO Healthcare is the ideal partner to carry this mission forward.”
CFAO Healthcare CEO Jean‑Marc Leccia emphasized the strategic rationale: integrating manufacturing, wholesale distribution, and retail under one roof will improve access, quality, and innovation in the pharmaceutical sector across East Africa.
Analysts say the exit represents the largest private equity‑led retail pharmacy transaction in Sub‑Saharan Africa outside South Africa. It also validates LeapFrog’s “profit-with-purpose” model by delivering both social impact through enhanced healthcare accessibility, and strong investor returns over an eight‑year horizon.
Looking ahead, CFAO intends to maintain Goodlife’s brand and operational teams while leveraging its deep supply chain infrastructure and regional footprint to accelerate expansion, with aspirations to extend Goodlife’s reach to underserved communities and underserved markets across the continent.
The deal aligns with broader market consolidation trends and reinforces Goodlife’s position as a leading healthcare services platform in East Africa.
It also signals a transition from private equity-led growth into strategic integration under a healthcare-focused conglomerate, potentially reshaping retail pharmacy dynamics in the region.
In summary, LeapFrog’s exit from Goodlife Pharmacy after nearly nine years, with full ownership transfer to CFAO Healthcare, marks a milestone in African healthcare investment. The move closes a successful chapter for LeapFrog and begins a new phase of integrated growth under CFAO in Kenya, Uganda, and beyond.
Written By Ian Maleve
