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IMPERIAL HOLDINGS LIMITED - Imperial Acquires Surgipharm Limited (Surgipharm), a Leading Pharmaceutical Distributor in Kenya

Release Date: 15/02/2017 12:25
Code(s): IPL     PDF:  
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Imperial Acquires Surgipharm Limited (“Surgipharm”), a Leading Pharmaceutical Distributor in Kenya

Imperial Holdings Limited
(Incorporated in the Republic of South Africa)
Registration number: 1946/021048/06
ISIN: ZAE000067211
Share code: IPL
(”Imperial” or the “Company’ or the “Group”)

IMPERIAL ACQUIRES SURGIPHARM LIMITED (“SURGIPHARM”), A LEADING
PHARMACEUTICAL DISTRIBUTOR IN KENYA

Imperial Holdings is pleased to advise shareholders that Imperial
Logistics has entered into an agreement to acquire a 70% interest in
Surgipharm for a cash consideration of      US$35 million (c.ZAR470
million). The transaction is subject to regulatory approvals.

Surgipharm, which is headquartered in Nairobi, is a leading
distributor of pharmaceutical, medical, surgical and allied supplies
in Kenya, with an annual turnover of approximately US$70 million
(c.ZAR940 million). Surgipharm was established in 1985 and has grown
to become one of the leading pharmaceutical distribution companies
in Kenya, with offices strategically located in Nairobi and Mombasa.
With a workforce of over 330 employees, warehousing space in excess
of 4 700 square metres and it’s own transport fleet, the business
caters for the needs of all pharmaceutical distribution channels in
the country, directly supplying products to the Ministry of Health,
parastatals,   NGOs,   hospitals,   clinics,   dispensing   doctors,
pharmacies and wholesalers. Dr. Vijai Maini will continue as the
Managing Director, and Mr. Vipin Shah and Rakesh Vinayak will
continue as Directors in their current roles post the transaction.

This transaction is in line with Imperial’s African growth strategy
to be a significant route-to-market partner of multi-national
companies in the consumer goods and pharmaceutical sectors in
Southern, East and West Africa. Surgipharm also complements
Imperial’s prior acquisitions in the pharmaceutical sector being
Imperial Health Sciences, Eco Health (Nigerian pharmaceutical
distributor)    and    Imres    (Netherlands-based   pharmaceutical
wholesaler).

Mark Lamberti, Group Chief Executive Officer of Imperial Holdings
said:   “Surgipharm   accelerates   our   industry   presence   and
relationships with pharmaceutical principals on the African
continent and provides an excellent platform for Imperial
Logistics’ future growth in other East African markets. Our entry
into pharmaceutical distribution in Kenya is also opportune, at a
time where there is GDP growth, rising income levels and a rising
middle class in the region. Furthermore, Surgipharm’s highly
specialised   and    experienced   management    team,   and    its
relationships   with    multinational   pharmaceutical    companies
complements and strengthens Imperial’s existing skill set in
logistics on the continent. We are excited about the prospects
that this acquisition brings.”

Bedfordview
15 February 2017

Sponsor: Merrill Lynch South Africa (Pty) Limited
Legal advisors: TWB

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