Imperial Logistics, a South African logistics and market access solutions provider led by South African businessman Mohammed Akoojee, announced on Tues., July 12, the strategic acquisition of a controlling stake in Africa FMCG Distribution Ltd. (AFMCG).
The acquisition of a controlling stake in the Nigeria-based firm, which is strategic for DP World, an Emirati multinational logistics company that serves as Imperial Logistics’ parent company, will strengthen the group’s presence on the African continent.
The transaction aligns with Dubai’s five-year plan to expand the emirate’s trade partnerships with promising global markets as part of the emirate’s efforts to boost its status as an international business hub, with a focus on high-growth markets such as Africa, Latin America, and Asia.
In his comment on the acquisition, Mohammed Akoojee, chief operating officer of DP World Logistics and group CEO of Imperial, said the acquisition provides Imperial with an excellent opportunity to grow while also providing pan-African solutions to its partners and customers.
“Being one of the largest economies on the African continent, Nigeria boasts a significant consumer market,” he said. “AFMCG presents an ideal opportunity with the necessary scale for us to leverage to sell truly pan-African solutions to our principals and clients.”
AFMCG, which is part of the Chanrai Group, is a multifaceted company that provides a nationwide and best-in-class route-to-market solution in Nigeria through multiple channels. Its services also include fast-moving consumer goods co-manufacturing, co-packing, sourcing, and value-added services.
AFMCG Chairman Subodh Chanrai said the strategic transaction strengthens the company’s presence in Africa. “It also enables us to provide additional benefits to our principals while keeping up with the evolving needs of the African consumer,” he said.
Imperial’s transaction is its first since being acquired on March 21 by DP World, a multinational logistics company led by Dubai-based businessman Sultan Ahmed bin Sulayem.
The acquisition represents a value unlock opportunity for Imperial Logistics investors, with Akoojee earning at least $1.5 million from his 0.19-percent stake in Imperial.
