NAMIBIA – Logistics and mobility company Imperial Logistics has entered into an agreement to acquire 100% of the issued share capital of perishable foods company Deep Catch Namibia for US$45 million.
Deep Catch is owned by private equity investment management firm Salt Capital Ventures and development finance institution German Investment Corporate DEG, as well as management shareholders Christoph Kubirske, Jared-Dwight Geyser, and Lewton Geyser.
Deep Catch wholesales, distributes and provides cold storage transport of perishable foods, mainly poultry, fish and dairy products, in Namibia and in the broader Southern Africa region.
Headquartered in Namibia and with subsidiaries in Namibia, South Africa, Zimbabwe, and Zambia, Deep Catch employs more than 480 people and serves customers in the wholesale, hospitality, and retail sectors, including exporting Namibian and South African food products to other SADC markets.
The company has three commercial cold storage warehouses in Namibia and South Africa and also owns a majority stake in one of the largest freight forwarding businesses in Namibia.
Through the expansive cold-chain capability and extensive network acquired through Deep Catch, Imperial’s market access business will be positioned to enter and build onto its cold chain capability and product category expansion in its existing markets of operation in sub-Saharan Africa, mainly Ghana, Nigeria, Mozambique and South Africa, where there is substantial demand for affordable protein products.
Imperial said the deal was in line with its “Gateway to Africa” strategy and provided the group with the opportunity to increase its reach into the consumer market and expand its footprint with new capabilities on the African continent.
“This acquisition will provide access to defensive, value-added capabilities in FMCG, such as re-packaging,” Imperial’s management said.
“This acquisition will provide access to defensive, value-added capabilities in fast-moving consumer goods, such as re-packaging”
In addition, the acquisition would provide an opportunity to expand Imperial’s reach to new customers and principals in other markets.
“In addition, and in line with Imperial’s strategy to leverage cross-selling opportunities across its businesses in Africa, the acquisition of Deep Catch, through expansion into the cold chain capability, will also provide opportunity to expand Imperial’s reach to new customers and principals in other markets of operation”
The management shareholders would be paid US$10.9 million, in three equal tranches when the audited annual financial statements of Deep Catch for the 2022, 2023 and 2024 financial years were completed, assuming targeted earnings before interest tax, depreciation and amortisation (Ebitda) were met.
The value of the net assets of Deep Catch as of June 30, 2020, was US$19.3 million.
Its revenue, Ebitda and taxed profit were US$70 million, US$6.8 million, and US$1.47 million respectively, for the year to June 30, 2020.
In July last year Imperial started operating within two overarching solutions – market access and logistics – and was categorised into three businesses: Market Access, Logistics Africa and Logistics International.
The group said in its 2020 annual report that it aimed to be the strategic partner of choice for multinationals seeking access to Africa’s growth and development opportunities and providing access to selected markets that were growing trade flows into and out of Africa.
Healthcare and consumer sectors in Africa are expected to grow by a five-year compound annual growth rate (CAGR) of 18 percent and 9 percent respectively, the group said.
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