Imperial expands to Nigeria

14 May 2013

A US$26 million cash transaction has given Imperial Holdings an unconditional 49% holding in MDS, a leading logistics provider in Nigeria. This provides the group entry into the logistics sector of the fast growing Nigerian FMCG, telecommunications and pharmaceutical industries.

MDS, a wholly owned subsidiary of UAC of Nigeria, a company listed on the Nigerian Stock Exchange, that offers warehousing and distribution solutions through a network of 50 distribution centres by linking companies with its customers in over 600 cities and villages across Nigeria.

Marius Swanepoel, CEO of Imperial Logistics, said, "Our newest acquisition strengthens Imperial Logistics' footprint in the continent and is consistent with our strategy of focusing on these consumer opportunities and following our customer base on the continent. MDS has a quality customer base with a strong new business pipeline. Through the transaction, the group has also secured a specialist management team, which strengthens and complements the group's existing skills set in the logistics business."

Widening South African FMCG reach

Peter Matlare, CEO of Tiger Brands, which owns 49% of UAC Foods Limited, said, "Imperial is a trusted logistics partner to the group in South Africa. It is wonderful that it is entering Nigeria in this way. It means that we can rely on its logistics support for our ever-growing business there."

Commenting on the rationale for the transaction, UACN's group MD/CEO, Larry Ettah, said, "We look forward to working together to engage the underserved and fast growing logistics market in Nigeria. We believe this transaction creates an outstanding opportunity to drive growth in MDS. The combination of the company's vital local experience and the value adding international logistics expertise of Imperial Logistics will lead to efficiencies and raise benchmarks in Nigeria for the benefit of all stakeholders"

This announcement follows Imperial's acquisition in January 2013 of Imperial Health Sciences formerly RTT Health Sciences, one of Africa's leading pharmaceutical and healthcare supply chain service providers. It specialises in multi-channel solutions for delivering essential medicines and consumer health products in South Africa, and to Namibia, Botswana, Mozambique, Zimbabwe, Zambia, Kenya, Tanzania, Malawi, Uganda, Ethiopia, Rwanda, Ghana, Cote d'Ivoire and Nigeria.

Commenting on the group's increasing footprint on the continent, Swanepoel said, "The acquisitions offer exceptional growth prospects, as they strengthen our current exposure to these high growth economies."