Imperial has entered into an agreement to purchase 100% of the issued share capital of the J&J Group for an enterprise value of $300m.
The J&J Group offers end-to-end logistics solutions along the Beira and North-South corridor, specialising in the transport of break-bulk, containerised, project, fuel and out-of-gauge cargo between Mozambique, Zimbabwe, Zambia, South Africa, Malawi and the DRC.
“This acquisition is in line with Imperial’s ‘Gateway to Africa’ strategy as it will optimise and expand Imperial’s reach in Africa by providing scale in end-to-end cross border transportation services in key African countries and new industries through well-established routes on the Beira and North-South corridors, port capabilities, a developed asset base including fleet and 45,000 sq m of warehousing space, and an entrenched customer portfolio,” said, Mohammed Akoojee, Group CEO at Imperial. This will position Imperial for quicker go-to-market outside of South Africa and will provide the group with end-to-end access to certain key countries and corridors (port to customer) in Africa.
“The J&J Group’s strategic asset base will complement Imperial’s asset-right focus and will serve to further expand the group’s access to critical trade networks, consolidating Imperial’s leverage and reach on the African continent.”
The transaction will be funded out of cash resources and existing debt facilities and will take place in three tranches, with Imperial initially acquiring 51% of the shares of the J&J Group. This will be followed by second and third tranches of 46.5% and 2.5% respectively.
The J&J Group provides access to a management team that collectively has 95 years of industry experience and a wealth of experience in transportation services in complex African markets, using leading technologies, processes and systems.
The acquisition of the J&J Group is subject to the fulfilment of regulatory and other outstanding conditions. In light of the recent announcement regarding the proposed acquisition of 100% of Imperial’s shares by DP World Logistics FZE (DP World), DP World’s consent to conclude the acquisition of the J&J Group was obtained.
Source: Imperial Logistics
