JSE-listed Super Group will acquire a 75% interest in German logistics company Telo Zwei Vermögensverwaltung, which owns niche logistics operator IN tIME Holding, from certain funds managed by Equistone Partners Europe.

The remaining 25% interest in Telo Zwei would be acquired by the IN tIME management team. 

IN tIME, headquartered in Germany, had 20 operating branches across Germany, Sweden, Hungary, Romania, the Czech Republic and Poland and serviced the automotive, electronics, hazardous goods, life sciences, pharmaceutical, temperature controlled, emergency blood and medical service industries.

Super Group’s interest in IN tIME would be held through its wholly owned subisidiary Bluefin Investments, which was registered in Mauritius.

The JSE-listed firm would fund its portion of the acquisition from R1.1-billion in cash, comprising R685-million for the 75% equity interest and a R424-million shareholder loan.

Super Group was planning to implement a rights offer of up to R900-million to assist with funding the acquisition and had entered into a R1.1-billion underwriting agreement with Investec Bank.

Further, Super Group had entered into binding debt facilities of R812-million with three European banks.

IN tIME management would make a R228-million equity contribution for their 25% interest through the contribution of their shares in Telo Zwei.

“We are excited to have concluded the acquisition of IN tIME at a reasonable 8.7 times earnings before interest, taxes, depreciation and amortisation multiple, based on the actual earnings of IN tIME for the year ended December 31, 2014.

“The effective return on equity, including shareholder loans, is 11.9%, based on a historical price earnings multiple of 8.4 times,” Super Group CEO Peter Mountford commented.

He added that the acquisition provided an “excellent fit” and formed part of Super Group’s core strategy to expand its supply chain activities in industry niches where it had extensive experience, including the automotive and industrial parts industries.

“The acquisition further expands Super Group’s geographical footprint and gives us access to the state-of-the-art proprietary dispatching software developed by IN tIME.

“We are confident that the acquisition of the 75% interest in IN tIME heralds an exciting phase in Super Group’s journey and we believe that the management team of IN tIME, with their extensive knowledge and experience, will be able to add value to our supply chain division. We are expecting this acquisition to be earnings-enhancing for the financial year ending June 30, 2016,” said Mountford.