The transaction relating to the acquisition of the first tranche of shares (51%) of the J&J Group, which was announced on July 29 last year, was closed on July 18 this year.
This will now be followed by the acquisitions of the second and third tranches of 46.5% and 2.5%, respectively.
J&J Group offers end-to-end logistics solutions along the Beira and North-South (Africa) corridors, specialising in the transport of break-bulk, containerised, project, fuel and out-of-gauge cargo between Mozambique, Zimbabwe, Zambia, South Africa, Malawi and the Democratic Republic of the Congo.
“This acquisition strengthens DP World’s position as an end-to-end logistics provider by adding J&J’s significant presence along these key corridors in Africa – a market where trade is expected to grow at more than twice gross domestic product, driven by population growth, accelerated urbanisation and a rising middle class,” says DP World group chairperson and CEO Sultan Ahmed Bin Sulayem.
Through the acquisition of the J&J Group, Imperial will now be positioned for quicker go-to-market speed outside of South Africa, and end-to-end access to certain key countries and corridors (port-to-customer) in Africa.
“This acquisition complements our Gateway-to-Africa focus as it optimises and expands our reach in Africa by providing scale in end-to-end cross-border transportation services in key countries and new industries,” said Imperial group CEO and DP World Logistics COO Mohammed Akoojee.
DP World has been steadily growing its business in Africa. The company currently operates nine ports and terminals across eight countries in Africa, namely Algeria, Angola, Egypt, Mozambique, Rwanda, Senegal, Somaliland and South Africa.
“We are excited for J&J to partner with Imperial and believe that the operations of these two businesses are very complementary. This combination offers existing and potential J&J clients a true gateway to Africa,” notes Carlyle and Ethos Private Equity, currently the controlling shareholders of the J&J Group.