• Sunday, May 19, 2024
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BusinessDay

UAC retains 51% stake in MDS in new deal with Imperial Logistics

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UAC of Nigeria plc (UAC), has signed a strategic partnership with Imperial Logistics, a leading international logistics and supply chain arm of the South Africa-based Imperial Holdings Limited.

According to the agreement, which has been signed by the two companies, Imperial Logistics is to acquire 49 percent equity in MDS Logistics plc, a wholly-owned subsidiary of UAC. UAC retains 51 percent majority stake in MDS Logistics plc.

UAC of Nigeria plc is a leading diversified Company with operations in foods, paints, logistics and real estate.

The Joint Venture is driven by the need for a strategic partnership with an experienced international operator that would bring technical expertise into the Company. Imperial Logistics, a division of the Imperial group established in 1946, is an international logistics and supply chain leader delivering excellence in end-to-end logistics and supply chain management with operations in several African countries and in Europe. MDS, previously a Division of UAC, is Nigeria’s leading provider of integrated supply chain solutions including warehousing, haulage, distribution and redistribution in over 600 cities and villages connected by a network of 50 distribution centres across Nigeria.

Commenting on the rationale for the transaction, Larry Ettah, Group Managing Director/CEO, UACN said: “We look forward to working together with Imperial Logistics as our strategic partner 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 MDS’ 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.”

Also commenting on the transaction, Marius Swanepoel, CEO of Imperial Logistics added: “Our newest acquisition strengthens Imperial Logistics’ footprint in Africa and is consistent with our strategy of focusing on consumer opportunities in Africa and following our customer base on the continent. MDS has a quality customer base with a strong new business pipeline. 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.”