Imperial
Logistics has acquired a 70% stake in Namibian sales, warehousing and
distribution business CB Enterprises. This transaction, through group company
CIC Namibia, is in line with the organisation’s strategy to grow its African
CPG and pharmaceutical distribution interests and capabilities, states Imperial
Logistics chief strategy officer Cobus Rossouw. In addition, it supports
Imperial Logistics’ aim to maintain its position as the country’s leading
provider of route to market solutions for multinational and local CPG
manufacturers, he says.
“The
acquisition of CB Enterprises provides us with a number of advantages and
opportunities for organic growth, including access to the company’s client base
and routes to market in the pharmaceutical sector. Our intention is to offer
the deepest penetration of all possible sales channels, including a high
quality retail and wholesale solution for pharmaceutical products. This
acquisition will help us to achieve that,” Rossouw expands.
He
notes that CB Enterprises’ clients include leading principals in the
pharmaceutical, cosmetics and personal care space. This differentiator, combined
with Imperial Logistics’ proficiency in the forecourts and pharmacies channels,
will complement our capabilities, and contribute to the development of a “resilient,
profitable, multidimensional, diversified business”, he asserts.
Rossouw
stresses that both parties will benefit from economies of scale and synergies
in outbound transport and back office administration and support services. “The
additional volumes provided by Imperial Logistics will enable CB Enterprises to
offer more frequent deliveries to retail, making its service offering more
relevant. The logistics overhead will be reduced by around 2%, which will
increase net margins. CB Enterprises’ introduction to Imperial Logistics’ sales
methodologies will increase the top line even further, and the company will
gain the advantage of access to CIC Namibia’s cash sales network”.
Established
in 1992, CB Enterprises is still owned by its original founder. The company
started off as a small agency representing South African manufacturers. Today,
it has an annual turnover of N$200 million and a staff complement of 107
people. It owns premises in Windhoek as well as a fleet of trucks and delivery
vehicles.
Imperial
Logistics has agency agreements with local and blue chip international
manufacturers. The company provides full route to market solutions for its
clients, leveraging a countrywide warehousing and distribution network that
encompasses eight strategically located facilities.
“The
addition of CB Enterprises’ strong client portfolio, which includes several
market leading brands will enable us to build an exceptional entity within the
Namibian market,” Rossouw concludes.