Imperial Logistics, a wholly owned division of Imperial Holdings, has entered into an agreement to acquire a 70% interest in Surgipharm, a leading pharmaceutical distributor in Kenya, for a cash consideration of US$35 million.
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 CEO of Imperial Holdings, comments: “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.”
“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.”