DP World’s Imperial has obtained final approval to acquire 100 per cent of the J&J Group, as it furthers its African footprint.
The transaction relating to the acquisition of the first tranche of shares (51 per cent) was announced on 29 July, later closed on 18 July.
This will be followed by the acquisitions of the second and third tranches of 46.5 per cent and 2.5 per cent, respectively.
J&J Group offers end-to-end logistics solutions along the Beira and North-South corridors in South-East Africa.
DP World announced that this acquisition will position Imperial for a quicker go-to-market outside of South Africa and end-to-end access to certain key countries and corridors in Africa.
“This acquisition strengthens DP World’s position in Africa 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 GDP driven by population growth, accelerated urbanisation and rising middle classes,” said Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World.
The news follows Imperial’s acquisition of a controlling stake in Africa FMCG Distribution Ltd (AFMCG), part of the Chanrai Group of Companies – demonstrating the Dubai operator’s ambition to expand its African arm’s reach.
“We are excited for J&J to partner with Imperial and believe that the operations of these two businesses are very complementary,” added Carlyle and Ethos Private Equity, the current controlling shareholder of the J&J Group.
“This combination offers existing and potential J&J clients a true gateway to Africa.”