15 May 2013
South African logisitics company Imperial Group has gained a foothold in the Nigerian market through a US$26-million deal to acquire a 49% stake in logistics provider MDS, the Johannesburg Stock Exchange (JSE)-listed group announced on Monday.
Imperial said the deal offered the company entry into the rapidly expanding Nigerian fast-moving consumer goods, telecommunications and pharmaceuticals sectors.
“Our newest acquisition strengthens Imperial Logistics footprint in our continent and is consistent with our strategy of focusing on these consumer opportunities and following our customer base on the continent,” Imperial Logistics chief executive officer, Marius Swanepoel, said in a statement.
MDS is a subsidiary of UAC of Nigeria and offers warehousing and distribution solutions through 50 distribution centres that link companies and customers in about 600 cities and villages in Nigeria.
“MDS has a quality customer base with a strong new business pipeline,” Swanepoel said.
“Through the transaction, Imperial has also secured a specialist management team which strengthens and complements the group’s existing skills set in the logistics business.”
The deal will also Imperial to partner with food company Tiger Brands, which owns 49% of UAC Foods in Nigeria.
“Imperial is a trusted logistics partner to Tiger Brands in South Africa,” said Tiger Brands CEO, Peter Matlare.
“It is wonderful that they are entering Nigeria in this way. It means that we can rely on their logistics support for our ever-growing business there.”