RCL Foods has secured a massive deal as it will sell its frozen logistics business Vector Logistics for a whopping R1,25 billion.
The company will sell to Denmark-based company, AP Moller Capital as BusinessTech Africa understands – the deal is subject to several approvals.
Owned by Remgro, RCL Foods has confirmed the news and AP Moller Capital is a fund manager that focuses primarily on Africa and Asia.
It is part of AP Moller Holdings, which is also the parent of logistics and shipping giant AP Muller – Maersk.
News24 Business reports that Vector Logistics owns cold storage facilities in South Africa and has a fleet of vehicles that transport frozen products from processing plants and warehouses to stores and other destinations.
Its clients include Wimpy and Steers owner Famous Brands, poultry giant Astral, and dairy producer Lancewoods – the group also offers sales and merchandising services.
“We believe this is an important and positive step forward for Vector Logistics, which has grown significantly in the 18 years it has been part of RCL Foods,” said CEO Paul Cruickshank.
“We believe that AP Moller Capital is the ideal custodian to support Vector Logistics’ success because of its extensive operational and investment track record in Africa and the infrastructure sector and the strong alignment between the parties’ respective ways of working, business values, and transformational focus.” he said.
In addition, RCL Foods is valued at about R10.7 billion on the JSE and owns top brands like Ouma, Rainbow Chicken, and Bobtail.
“Vector Logistics is highly respected with a long track record in SA and we are excited to contribute to its transformative vision for both the industry and the region,” said AP Moller Capital partner Joe Nielsen.
“Vector Logistics’ reliable operations enable maintenance of the cold chain for food products, which increases shelf life and reduces food waste. We see a growth opportunity for Vector Logistics and we believe that our experience and our network will help to drive this growth.
“In addition, this is an important step for RCL Foods in our journey to reshape the portfolio.”
