Supply chain and logistics leader Imperial Logistics has entered into an agreement with AECI Limited to dispose of the Group’s total interest in and claims against Schirm Gmbh and related assets (“Schirm”) for a cash consideration of EUR110.5 million, in line with the invested capital of the business.
This move is in line with the group’s strategy to invest only in its core capabilities, states Imperial Holdings group CEO Mark Lamberti. “Imperial Logistics has established capabilities in transportation, warehousing, distribution and synchronization management, and its international freight management capability is being expanded,” Lamberti explains. “The specialisation and capital intensity of chemical contract manufacturing is not aligned with these capabilities or Imperial’s stated objective of reducing capital intensity. Moreover, there are no operational or financial synergies between chemical contract manufacturing and Imperial Logistics’ other operations. As a result, Imperial has decided to divest from Schirm.”
Schirm, which became part of the Group in 2011 through the acquisition of Lehnkering, is a subsidiary of Imperial Mobility International B.V., the Group’s holding company for its non-African international logistics operations. Headquartered in Germany, Schirm is an established provider of formulation services of agrochemicals in Europe with an integrated coverage across the entire value chain. Agrochemical products include herbicides, fungicides and insecticides while the fine chemicals portfolio comprises raw materials for the biocides, personal and home care, adhesives and rubber industries.
Imperial Logistics has also entered into a separate agreement with AECI to lease warehouse space to meet its optimal storage requirements. As such, for a period of one year from the closing date of the transaction, AECI retains an option to acquire four warehouses at the Schirm plant in Schönebeck for a maximum additional purchase consideration of EUR9.0 million.
“Imperial Logistics will continue to provide warehousing, transportation and distribution services to the Schirm operations, adding to its valued relationship with AECI, and will further enhance its value-add logistics and supply chain management solutions to the chemical industry in all the regions in which it operates,” concludes Lamberti.
Finalisation of the transaction is still subject to certain conditions precedent, mainly regulatory approvals from the relevant authorities in Germany and South Africa.