Supply chain solutions provider DP World has revealed plans to acquire Imperial Logistics in an $890m deal.
Dubai-headquartered DP World, which has 136 business units in 61 countries across six continents, said it is interested in acquiring Imperial and all of its businesses to expand its logistics footprint in Africa and Europe.
“The acquisition will enhance DP World’s capabilities, particularly in Africa, building on its extensive infrastructure of ports, terminals and economic zones,” the company said in a statement.
“It will also significantly accelerate DP World’s transformation into an advanced logistics company offering end to end supply chain services to the owners of cargo.”
It added: “DP World’s cash offer of ZAR66 per share implies an equity consideration of around ZAR 12.7bn (around US$890m).”
Sultan Ahmed Bin Sulayem, group chairman and chief executive of DP World, commented: “We are excited to announce the proposed acquisition of Imperial, which will add significant strategic value to DP World given its attractive footprint and strong logistics solutions capability.
“Imperial has a significant presence in Africa, a market where trade is expected to grow at more than 2x GDP driven by population growth, accelerated urbanisation and rising middle classes. Imperial’s business strongly complements DP World’s existing footprint in Africa and Europe and will allow us to deliver a fully integrated end-to-end solution to cargo owners across a wider market.”
Mohammed Akoojee, group chief executive at Imperial Logistics, added: “This transaction will be value-enhancing for Imperial as our business will benefit from DP World’s leading technology, global networks and key trade-lane volumes, while enabling us to build on our ‘Gateway to Africa’ strategic and growth ambitions.
“Our Logistics International business and operations are also aligned with DP World’s strategic expansion plans on the European continent. Combining DP World’s world-class infrastructure, specifically its investment and expertise in ports on the African and European continents, with Imperial’s logistics and market access platforms will enable us to offer integrated end-to-end solutions along key trade lanes into and out of Africa and accelerate our position in Europe, driving greater supply chain efficiencies and ultimately enhancing value for all stakeholders.”
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