Commercial Cold Holdings has bought Sequence Logistics, a temperature-controlled warehousing, distribution and supply-chain solutions provider that operates across Southern Africa.
The deal represents CCH’s second acquisition in the temperature-controlled logistics sector following its acquisition of CCS Logistics from Oceana Group. It also aligns with its mandate to secure ‘attractive long-term partnerships with market-leading retailers, wholesalers and food producers.’
The acquisition will be funded by increased equity commitments to CCH by the AIIM-managed funds: AIIF4 and IDEAS Managed Fund.
To facilitate its growth in this sector, the company has also appointed Paul Gibbons as CEO. Gibbons has designed and implemented cold-storage supply chains for over 30 FMCG food producers. He also serves as the Chair of the Global Cold Chain Alliance’s Africa advisory council.
CCH’s advisers were ENS Africa (legal), Frost and Sullivan (commercial), PWC (tax and financial due diligence) and Arup (technical due diligence). Investec advised Sequence Logistics.
Sequence Logistics owns 46,000 pallets of temperature-controlled storage capacity in Durban, Cape Town and Johannesburg. It also manages a fleet of trucks that operate scheduled store deliveries for retail partners and food suppliers.
As part of its integration into CCH, the company has set out a number of ESG commitments, which are that by 2025, 30% of overall staff numbers, board members and management are made up of women.