In a bold strategic move, South Africa-based Super Group Limited (Share code: SPG) has announced the successful acquisition of 78.82% equity in UK’s Amco, a renowned transport and logistics business. With a purchase consideration of GBP 30.3 million, this acquisition positions Super Group as a leading player in the European logistics market.
Amco’s Impressive Profile in the Transport and Logistics Industry:
Amco, a business with its origins dating back to 1983, has firmly established itself as a premier provider of specialist land, air, and sea logistics services. The company boasts 11 operating locations across the UK, and its strategically positioned hubs throughout Europe offer a competitive edge in serving a diverse range of manufacturing sectors, including automotive, telecommunications, retail, construction, mining, and FMCG.
One of Amco’s key strengths lies in its team of highly experienced specialists, many of whom have previously worked in customer sectors such as automotive, waste, defense, and FMCG markets. The company leverages a worldwide network of international partners, ensuring that local knowledge and expertise are brought to bear in delivering exceptional logistics services.
Financial Snapshot and Funding of the Acquisition:
The acquisition of Amco’s equity was executed at a purchase consideration of GBP 30.3 million, fully paid in cash without any deferred considerations. After accounting for identifiable intangible assets and deferred taxation, the net assets acquired amount to GBP 8.4 million.
The financial performance of Amco has been robust, as evidenced by its impressive earnings before interest, tax, depreciation, and amortization (EBITDA) of GBP 9.2 million. The company’s Profit Before Tax stood at GBP 8.36 million, with a Profit After Tax of GBP 6.65 million for the twelve months ending June 30, 2023.
To finance the acquisition, Super Group successfully raised ZAR 810 million through a five-year corporate bond issued on June 29, 2023. This funding indicates the company’s strong financial position and determination to pursue strategic growth opportunities.
A Table Depicting Key Financial Figures:
The following table summarizes the key financial figures associated with the acquisition of Amco:
| Financial Figures (GBP Million) | Amount |
|---|---|
| Purchase Consideration | 30.3 |
| Net Assets Acquired | 8.4 |
| EBITDA (Twelve Months Ended June 2023) | 9.2 |
| Profit Before Tax (Twelve Months Ended June 2023) | 8.36 |
| Profit After Tax (Twelve Months Ended June 2023) | 6.65 |
Super Group’s Strategy and Future Prospects:
The acquisition of Amco aligns perfectly with Super Group’s strategy, which involves selective acquisitions to strengthen its core supply chain, fleet solutions, and dealerships businesses. By integrating Amco’s expertise in specialist logistics services, Super Group gains a significant competitive advantage, poised for market share expansion across the UK and Europe.
Amco’s well-established relationships with original equipment manufacturers, investments in value-added services such as e-commerce fulfillment, procurement, and consulting, as well as its strategically located warehousing and branded fleet, add immense value to Super Group’s existing portfolio. Furthermore, Amco’s strong partnership with third-party logistics providers bolsters the company’s position in the market.
The successful completion of this acquisition signifies Super Group’s commitment to growth and its vision to become a global leader in the logistics industry. With the addition of Amco to its fold, Super Group is well-positioned to deliver exceptional logistics services to its clients in the UK and Europe.
Conclusion:
The acquisition of Amco by Super Group Limited marks a strategic move that propels the company’s growth and competitiveness in the transport and logistics industry. With Amco’s well-established presence in the UK and Europe, along with its robust financial performance, Super Group gains a powerful ally to strengthen its supply chain offering and seize new market opportunities.
