South African logistics firm Imperial Holdings is set to pay Sh3.6 billion for 70 percent in a Kenyan pharmaceutical company Surgipharm.
The Nairobi headquartered Surgipharm is a key distributor of pharmaceutical, medical, surgical and allied supplies in Kenya, with an estimated annual revenue of about KSh7 billion ($70 million).
The South African firm on an expansion drive has made past acquisitions in Nigeria and the Netherlands.
“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,” Imperial Chief Executive Mark Lamberti was quoted by Reuters.
Awaiting the approval from the government Chief Executive of Imperial Holdings Mark Lamberti says the acquisition will accelerate the holding company’s industry presence and relationships with pharmaceutical principals in Africa.
“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,” said Lamberti.
African growth strategy
The company said the transaction is in line with 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),” said the company in a statement.
Surgipharm, which directly supplies products to the Ministry of Health, parastatals, hospitals and other medical organizations, has a workforce of 330 employees.
Imperial has expressed confidence in Surgipharm’s management team stating Dr. Vijai Maini will continue as the Managing Director, while Vipin Shah and Rakesh Vinayak will continue as Directors.