African Infrastructure Investment Managers acquires Sequence Logistics as a logical next step
By PwC
Setting the scene
African Infrastructure Investment Managers (AIIM) is dedicated to creating investments that not only yield impressive returns to investors but also contribute tangibly to local economies and communities. The opportunity to acquire Sequence Logistics was a great step towards this commitment.
Sequence Logistics is a leading temperature-controlled warehousing, distribution and supply chain solutions provider across Southern Africa. It owns three facilities in Durban, Cape Town and Johannesburg and manages a fleet of trucks for deliveries to retail partners and food suppliers.
On 4 October 2022, AIIM announced the establishment of a cold chain platform, Commercial Cold Holdings (CCH), with the initial acquisition of CCS Logistics from Oceana Group. The acquisition of Sequence Logistics marks an important second addition to CCH’s expanding portfolio within this sector, aligning with AIIM’s commitment to both financial growth and positive local impact.
How we helped
We acted as financial and tax advisor to the transaction, which was financed by increased equity commitments from the IDEAS Fund and the pan-African AIIF4 Fund.
We previously acted as financial and tax advisor to AIIM on its initial acquisition of CCS Logistics, so we were excited about helping AIIM once again in growing this platform business. Our support took the form of financial, tax and IT due diligence on the transaction.
We also helped with the sale and purchase agreement, taking into account things like the difference between the company’s total value and its ownership value, the money needed to keep the business running, and dealt with any problems about promises, protection, and information that came up during the investigation process. Our tax team also provided tax consulting services to AIIM for this transaction.
Making a difference
Our Delivering Deal Value team helps out with the operational details of mergers and acquisitions, so we further supported AIIM by looking into the complexities of integrating Sequence Logistics into CCH. We considered the transition service agreement, how the business functions, and potential problems to make sure that the integration went smoothly.
These steps will help AIIM succeed in the long run. We tackled complex issues, improved transition agreements, looked at all aspects of the business and reduced risks. This transaction was about more than short-term gains; it was about delivering a solid solution for sustainable growth and success.
Let us be part of your success story. Reach out to start a conversation.
Ryan Rodkin
Partner, Deals PwC South Africa
Phone: +27 21 529 2182
Email: ryan.rodkin@pwc.com