JSE-listed Imperial Logistics’ subsidiary Imperial Capital Limited (ICL) has entered into agreements to acquire the J&J Group logistics company, which operates in Africa, for R4.4-billion.
Imperial earlier in July announced it is in discussions involving the acquisition of a privately owned group of companies known as the J&J Group.
The agreement has been reached between ICL and two private investment vehicles managed by The Carlyle Group and Ethos Private Equity, respectively, as well as Lift Acquisitions, the founders of J&J Group and other key managers.
ICL will acquire 100% of the issued share capital of Lift Logistics Holdco – the holding company of a group of companies known as J&J Transport, and Greendoor Group, which houses the South African operations of J&J Group.
The J&J Group was founded in 1995 and has operations in Mozambique, Zimbabwe, Zambia, South Africa, Malawi and the Democratic Republic of Congo. The company offers end-to-end logistics solutions, specialising in the transport of break-bulk, containerised, project, fuel and out of gauge cargo between these countries.
The group is versed in moving all kinds of cargo and uses leading technology throughout the business.
The acquisition fits in with Imperial’s strategy to provide integrated market access and logistics services, which requires the company to invest in African businesses that will give it the ability to facilitate trade flows into, out of, and across Africa.
The acquisition will grant ICL access to new regions and corridors, and afford it quicker market access outside of South Africa.
Imperial will fund the transaction using cash resources and existing debt facilities.
The company also advises that it received the approval of supply chain solutions provider DP World to proceed with the transaction.
DP World earlier in July announced the R12.7-billion buyout of Imperial.