A Super Group truck. Super Group says the acquisition will complement its supply chain offering, providing opportunities for market share gains across the UK and Europe. Photo: Supplied
Super Group is acquiring 78.82% of UK-based logistics and transport business CBW Group Holdings for £30.3 million (R695m).
Super Group, the JSE-listed global logistics and mobility solutions group, said yesterday the acquisition of CBW Group Holdings, which trades as Amco, was in line with their strategy to make selective acquisitions in its core supply chain, fleet solutions and dealerships businesses.
It said yesterday the acquisition would complement the group’s supply chain offering, providing opportunities for market share gains across the UK and Europe.
Super Group raised a five-year corporate bond on June 29, 2023, of R810m to facilitate the acquisition.
Its share price increased 2.18% to R33.78 on the JSE yesterday afternoon, a price that had risen 22.9% over a year.
Amco is also a leading provider of specialist land, air and sea logistics out of 11 UK operating locations and hubs strategically located across Europe.
Amco delivers logistics services to more than 250 UK and European customers that operate in a diverse range of manufacturing sectors – including automotive, telecommunications, retail, construction, mining and FMCG (fast-moving consumer goods).
The acquisition was paid for in cash. The net assets acquired amount to £8.4m after including an estimated £3.7m of identifiable intangible assets after deferred taxation.
For the 12 months to June 30, CBW Group Holdings generated earnings before interest, tax, depreciation and amortisation (Ebitda) of £9.2m. Pretax profit was £8.36m and taxed profit came to £6.65m.
The acquisition was effected through Super Group’s 100% owned UK subsidiary, SG International Holdings.
Amco’s existing management would retain the remaining 21.18% shareholding and its management team will remain employed in the business.
Super Group said Amco’s business segment had high barriers to entry, with the company resiliently positioned as a result of its well-established original equipment manufacturer relationships, investment in new value-added services, such as e-commerce fulfilment, procurement and consulting, strategically located warehousing, branded fleet and third-party logistics partners.
Super Group delivered an exceptional financial performance for the six months to December 2022, significantly exceeding its pre-Covid performance levels. New business and improving volumes in key sectors saw revenue increase by 34.6% to R29.12 billion. Ebitda increased by 24.2%% to R4.11bn, with headline earnings per share increasing by 30.1% to 248.3 cents.
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