Juicy logistics fruit
Corporate division becomes a Southern African platform.
The Logistics Group (TLG), set up by fruit grower and distributor Capespan to handle its production and export logistics, has now been bought by two funds. One of their goals is to improve logistics between South Africa, Namibia, Zambia and Mozambique.
Two partners made a major acquisition in the African logistics sector recently, by together buying a group that operates mainly in Southern Africa. The private equity fund African Infrastructure Investment Managers (AIIM), which focuses on infrastructure, and the Mokobela-Shataki consortium have acquired 100% of the shares in The Logistics Group (TLG), an integrated firm operating in several Southern African countries. African Infrastructure Investment Managers acquired 74% in TLG, whilst 26% went to Mokobela-Shataki.
The deal is worth ZAR 1.57 billion (USD 110 million), and was funded through a mix of equity and debt financing. The Logistics Group provides its services in the port, railway and warehousing segments of Southern Africa, as well as offering solutions for digital transport logistics.
A multifaceted player
The firm that’s been sold isn’t particularly old. Capespan, the major South African fresh produce group, established The Logistics Group (TLG) in 2019, to combine all of its logistics activities in one integrated service provider. In a previous phase Capespan had already invested heavily in its logistics activities for four years, acquiring the service provider Tradekor and the goods handler Port Stevedoring, amongst various others.
In this phase Capespan also added the port terminal operator FPT, the freight forwarder Contour Logistics as well as Matola Cargo Terminal (MCT), now the heart of its cargo business in Mozambique, to its overall logistics portfolio.
Zeder, a South African argibusiness holding that is listed on the Johannesburg stock exchange, is the driving force behind this latest agreement. Zeder took over Capespan in stages from 2011 onwards. In the meantime it has – apparently successfully, it must be said – geared TLG up for profit.
Make it into a platform
The ambition of the buyers is to significantly expand The Logistics Group’s domestic, regional and transnational operations. The investment director of African Infrastructure Investment Managers, Ed Stumpf, was the one to outline their vision. “We see TLG as the cornerstone of a regional port and logistics platform that will drive additional investment along a number of transportation corridors, to support regional and trans-regional trade.” Intermodal rail-road connections – which will also help reduce the extent of CO2 emissions in the region – are also part of the overall concept.
In any case, extensive investment has already been planned by the new owners, with the objective of improving The Logistics Group’s terminals, located in Cape Town, Port Elizabeth and Durban. This work will be carried out in partnership with the Transnet National Ports Authority, an indispensable South African player. The Logistics Group’s international transport portfolio operating in Mozambique, Zambia as well as in Namibia will also be promoted.