UTi acquires South African pharmaceutical logistics firm
UTi Worldwide Inc. is acquiring South Africa-based International Healthcare Distributors (Pty.) Limited, a pharmaceutical distribution provider.
International Healthcare Distributors, jointly owned by 11 major multi-national pharmaceutical manufacturers, provides logistics and warehousing support and distribution services of pharmaceutical products throughout southern Africa directly to end dispensers such as doctors, clinics, pharmacists and hospitals, as well as wholesalers. Based on the economic terms of the transaction, the company would have generated in 2002 revenues of about $35 million and earnings before interest and tax of about $7 million.
California-based UTi said that the pending transaction will further expand its global contract logistics business and deepen its capabilities in pharmaceutical distribution. Under the agreements, International Healthcare Distributors will be acquired by a partnership, which will be 74.9 percent owned by UTi and 25.1 percent owned by a South African, black economic empowerment organization.
The purchase price will total about $40 million in cash, which includes a loan of approximately $17 million from UTi to the partnership.
The takeover, which is expected to be completed in the first quarter of 2004, is subject to various closing conditions, including the approval of the South African competition authorities.