Logistics multinational Imperial Logistics has entered into an agreement to acquire 100% of the issued share capital of perishable foods company Deep Catch Namibia for R633-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.
“The transaction is in line with Imperial’s Gateway to Africa strategy and provides it with the opportunity to increase its reach into the consumer market and expand its footprint with new capabilities on the African continent,” Imperial says.
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.
“This acquisition will provide access to defensive, value-added capabilities in fast-moving consumer goods, such as re-packaging.
“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 company says.
Deep Catch is a diversified and vertically integrated business engaged in the wholesale, distribution and cold storage of perishable foods, mainly poultry, fish and dairy products, in Namibia and the Southern African Development Community (SADC) 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.
Deep Catch has three commercial cold storage warehouses located in Namibia and South Africa.
Its distribution business has physical presence in SADC countries with more than 50 multi-temperature delivery vehicles. The business also owns a majority stake in one of the largest freight forwarding businesses in Namibia.
The transaction requires that Deep Catch achieve certain earnings before interest, taxes, depreciation and amortisation (Ebitda) targets during its 2021 to 2024 financial years.
“The transaction is subject to the fulfilment of the suspensive conditions, including the submission of merger filings to the South African, Namibian and Common Market for Eastern and Southern Africa competition authorities and approval by the South African and Namibian authorities.
Additionally, the consent of the existing funders of Deep Catch to the transaction and the counterparties to certain material contracts is required, as is the conclusion of a three-year service agreement including restraints between the the management shareholders, key managers and Deep Catch, as well as Imperial confirming that no material adverse event has occurred within ten business days of the fulfilment of all the other conditions.
The value of the net assets of Deep Catch at June 30, 2020, which is the date of the last audited annual financial statements, was N$287.6-million.
Its revenue was N$1.035-billion, its Ebitda N$100.8-million and its profit after tax attributable to net assets N$21.9-million.