UAC of Nigerian Plc has announced a strategic partnership with Imperial Logistics, an arm of South African-based Imperial Holdings Limited.

The agreement, signed by both companies, shows that Imperial Logistics is to acquire 49 per cent equity in MDS Logistics Plc, a wholly-owned subsidiary of UAC.

A statement by UAC on Monday revealed that following the joint-venture, UAC would, however, retain 51 per cent majority stake in MDS Logistics.

The statement added that the joint venture was driven by the need for a strategic partnership with an experienced international operator that would bring technical expertise into the company.

MDS is Nigeria’s leading provider of integrated supply chain solutions such as 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, UACN’s Group Managing Director, Mr. Larry Ettah, 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 efficiency and raise benchmarks in Nigeria for the benefit of all stakeholders.”

Chief Executive Officer, Imperial Logistics, Mr. Marius Swanepoel, said, “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.”

The statement added that 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.

UAC is a company with operations in foods, paints, logistics and real estate.

UAC recently announced a 51 per cent share acquisition of Livestock Feeds Plc, a company that produces animal feeds and quoted in the Agricultural sub-sector of the Nigerian Stock Exchange’s Daily Official List.

The transaction, which received the required statutory approvals, was concluded via a special placement and placed UACN as the majority shareholder with a shareholding of over 51 per cent in livestock having previously acquired in excess of 11 per cent of the company’s share capital through secondary market trade.

Source: Punch