Acquisitions and disposals during the year


As announced in the interim results, Imperial acquired a 53% interest in Eco Health Limited, for a cash consideration of USD74 million. The transaction was effective 1 March 2014. A further 15% was acquired from a private equity investor (IHFA ) for a cash consideration of USD26 million, effective 15 May 2014. Subsequent to this transaction Imperial owns 68% of Eco Health and Chanrai Summit Limited (including key management) 32%.

Eco Health is a leading distributor of pharmaceutical products (Ethical, Generics and Over the Counter (“OTC”) drugs) in Nigeria. Based in Lagos, with operations in Ghana and Dubai, the company has long-standing contracts with leading multinational pharmaceutical manufacturers to distribute, sell and market their products. The acquisition complements Imperial’s existing businesses in Nigeria as it adds sales and marketing capabilities to our service offering, enabling us to offer an end to end capability in the fast growing pharmaceutical sector in the region.


Effective from 1 December 2013, Imperial acquired a further 11% shareholding in Renault SA for a cash consideration of R65 million, thereby also increasing our shareholding from 49% to 60%. The increased shareholding is consistent with our strategy of adding more exclusive imported brands to our existing distribution network, thereby creating downstream revenues and profits in parts, services, and financial services and products.


The group continues to focus on the strategic fit and returns of its businesses. As a result, the tourism division, which had become sub-scale in the context of the group, was sold in the first half of the financial year to Cullinan Holdings Limited. The purchase price was settled by the issue of 81 818 181 shares in Cullinan Holdings.



Effective 9 July 2014 the group acquired 62,5% of the issued share capital of Pharmed for a cash consideration of R148 million. Pharmed is a pharmaceutical wholesaler which generates sales of approximately R1,5 billion and employs approximately 560 staff based in Durban and Johannesburg. It purchases product from pharmaceutical companies and warehouses, distributes and sells to hospitals, private pharmacies and dispensing doctors. The Pharmed acquisition augments Imperial Health Sciences in support of Imperial’s strategy to integrate pharmaceutical wholesaling and distribution into its service offering.