Global supply chain management group UTi, 30% owned by JSE-listed United Service Technologies (Uniserv), has bought South African pharmaceutical logistics provider International Healthcare Distributors (IHD) for $40 million.
"Since its launch in 1993, IHD has grown to become the leading pharmaceutical products distributor in SA, supported by its Internet-based technology platform," says Graham Somerville, UTi`s executive responsible for the deal.
UTi is a Nasdaq-listed group that aims to optimise the operation of customers` global supply chains through the use of its global network, proprietary IT systems, relationships with transportation providers and expertise in outsourced logistics services.
The group says that in terms of the deal, IHD will be acquired by a partnership 74.9% owned by UTi and 25.1% owned by a local broad-based black economic empowerment organisation.
IHD has about 450 employees and maintains five distribution centres.
The $40 million cash purchase price includes a loan of about $17 million from UTi to the partnership.
The deal, which is subject to various conditions, is expected to be completed in the first quarter of next year.
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