JSE-listed OneLogix acquires logistics companies in R110m deal

February 10, 2015


JSE-listed logistics group OneLogix has signed a R110-million deal to acquire four specialised logistics companies, known as Jackson and Buffelshoek, from Jackson Group and shareholder Jacques du Randt.

Jackson and Buffelshoek operate in the refrigerated fresh produce, industrial food and related markets in South Africa and the greater Southern African region.

The acquisition would be settled through R90-million in cash and the issue of R20-million in OneLogix shares.

The agreement would see OneLogix acquire, from Jackson Group, 74% of the entire issued share capital of Jackson Transport and 100% of all amounts owed by Jackson Transport to the Jackson Group; 74% of the entire issued share capital of Jackson Fleet and 100% of all amounts owed by Jackson Fleet to the Jackson Group; 74% of the entire issued share capital of Buffelshoek Transport and 100% of all amounts owed by Buffelshoek Transport to the Jackson Group.

OneLogix also concluded an agreement with Du Randt to acquire 74% of the entire issued share capital of Buffelshoek Fleet and 100% of all amounts owed by Buffelshoek Fleet to Du Randt and/or the Jackson Group.

The company said the acquisitions represented the continued and systematic progression of OneLogix’s acquisition strategy of further reducing its dependence on the auto-logistics component of its business. Further, the company believed Jackson and Buffelshoek exhibited a good balance between cyclical and noncyclical demand.

Du Randt would remain well vested with shareholder-aligned interests of 26% in Jackson and 16% in Buffelshoek.

PURCHASE AGREEEMENT
The purchase consideration was calculated on the basis of the consolidated net tangible asset value of Jackson and Buffelshoek as at March 1, 2015, subject to a minimum amount of R37-million.

Should the net tangible asset value be less than R37-million on March 1, the purchase consideration would decrease by an amount equal to the difference between R37-million and the net tangible asset value on that day.

The current net asset value and net profit after tax of Jackson and Buffelshoek for the most recent financial year was R67.5-million and R17.7-million, respectively.

The acquisition was subject to approval by South Africa’s competition authorities. Source: Engineering News