PwC advises on AIIM’s acquisition of CCS Logistics
PwC is proud to have acted as financial advisor to African Infrastructure Investment Managers (AIIM) on its recent acquisition of CCS Logistics from Oceana Group.
On 4 October, AIIM and its investment partners – Bauta Logistics and Mokobela Shakati (Pty) Ltd Consortium – announced the establishment of a cold chain platform Commercial Cold Holdings (CCH), with the initial acquisition of CCS Logistics from Oceana Group. CCS has been operational for over 50 years and is an established leader in South Africa’s temperature-controlled logistics market. Currently, the business operates six storage facilities across Johannesburg, Cape Town and Walvis Bay (Namibia).
The transaction was financed by a mix of equity and debt financing. AIIM, through its flagship South African IDEAS Fund and pan-African AIIF4 Fund, will have a controlling 59.2% stake in CCH.
PwC assisted AIIM with financial, tax and IT due diligence on the transaction. It also provided support on the sale and purchase agreement (SPA), which included consideration of the enterprise value to equity value bridge and working capital as well as warranties, indemnities and disclosures identified during the due diligence phase.
The PwC Delivering Deal Value team provides advice and support on the operational issues arising from merger and acquisition transactions. As such, it further supported AIIM with transition service agreement (TSA) considerations and input regarding the value and treatment of once-off and recurring implementation costs.
AIIM has subsequently also engaged the Delivering Deal Value team to assist with taking control of the CCS Logistics business. This will entail the separation of the CCS entity from Oceana and standing up an independent organisation with workstreams including, People, ICT and Operations Technology.