Super Group buys UK logistics firm Amco for R700m

Super Group on Wednesday said it bought 78.82% of UK-based logistics firm CBW Group Holdings for £30.3m (R700.1m) as the logistics and mobility solutions company makes headway in expanding its international operations and offshore earnings.

The acquisition of CBW, which trades as Amco, was made via Super Group’s UK subsidiary, SG International Holdings, the industrial transportation group said in a statement on Wednesday.

Super Group, which is valued at R11.4bn on the JSE, raised R810m from a five-year corporate bond on June 29 to facilitate the deal that is effective immediately.

“The acquisition of Amco will significantly complement the group’s supply chain offering, providing opportunities for market share gains across the UK and Europe,” the company said, adding that there are no outstanding conditions precedent.

The 40-year-old Amco provides specialist land, air and sea logistics to more than 250 UK and European customers from 11 UK operations and hubs located across Europe.

Super Group, which has supply chain, fleet and dealership operations across Sub-Saharan Africa, the UK, Europe and Australasia is diversifying to broaden its income base and mitigate geographical risk.

For the 2022 financial year, its European operations were affected by the protracted semiconductor shortage in the wake of the coronavirus pandemic and then the war in the Ukraine. Super Group said the latest acquisition into the supply chain market, which has high barriers to entry, is a good fit because Amco has well-established original equipment manufacturer relationships, well located warehousing, a branded fleet and third-party logistics partners.

Last year Super Group bought LeasePlan Australia and New Zealand for R4.41bn, giving it a substantial presence in the region’s fleet management and leasing services market.

Amco generated earnings before interest, tax, depreciation & amortisation (ebitda) of £9.2m for the 12 months to end-June, pretax profit of £8.36m and a bottom line of £6.65m.

To ensure stability and continuity, Super Group said the existing management will retain the remaining 21.18% of the company. The  team includes experienced specialists, many of whom have previously worked in sectors such as the automotive, waste, defence and fast-moving consumer goods markets.

For the six months to December, Super Group reported a 30.1% year-on-year increase in headline earnings per share — the primary measure of profit for SA companies — to 248.3c. Operating profit was 26.1% to R2bn.

CEO Peter Mountford said the group had rationalised its network in Germany by closing smaller branches and consolidating in its larger regions.

Mountford said the move included spending money on technology and the automation of many of the company’s operations using artificial intelligence and blockchain-type solutions.

Super Group shares were trading 2.86% higher at R33.88 shortly after midday.

gumedemi@businesslive.co.za