AIIM expands logistics platform with new acquisition
Commercial Cold Holdings (CCH), a cold chain logistics platform controlled by funds managed by African Infrastructure Investment Managers (AIIM), has closed a deal to acquire 100% of Sequence Logistics.
Sequence Logistics is a temperature-controlled warehousing, distribution and supply chain solutions provider across Southern Africa. The acquisition will be funded by increased equity commitments to CCH by the AIIM-managed funds: AIIF4 and IDEAS Managed Fund.
“The deal will allow CCH to deliver on its mandate by securing attractive long-term partnerships with market-leading retailers, wholesalers and food producers,” said AIIM investment director, Damilola Agbaje.
This is CCH’s second acquisition in this sector. In 2022, it acquired CCS Logistics from Oceana Group.
To bolster CCH’s foray into the temperature-controlled logistics industry, the business has appointed Paul Gibbons as CEO. Gibbons has over 20 years’ experience in cold chain distribution and supply chain management, making him a recognised industry leader in this field. He has designed and implemented cold storage supply chains for over 30 FMCG food producers and three major retailers, as well as led customer engagement for a major third-party logistics business.
“With both Sequence and CCS, we want to be the partner of choice in South Africa for both storage and load consolidation solutions. We will have a technology-led approach as part of the blueprint for the group to achieve this,” said Gibbons.
Sequence Logistics owns 46,000 pallets of temperature-controlled storage capacity across three facilities in Durban, Cape Town and Johannesburg. The company also manages a fleet of trucks operating scheduled store deliveries for retail partners and food suppliers.
ENS Africa were the legal advisors, and Frost and Sullivan the commercial advisors; PwC conducted the tax and financial due diligence; and Arup the technical due diligence. Investec advised Sequence Logistics.
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