Imperial has sold its South American shipping business to Hidrovias do Brasil S.A. for an enterprise value of USD 90 million.

Target Information

Imperial has announced the successful sale of its South American shipping business to Hidrovias do Brasil S.A. This transaction, finalized on April 16, 2021, is part of Imperial's strategic plan to streamline its operations and focus on its core African logistics market. The sale reflects an enterprise value of USD 90 million (approximately ZAR 1.305 billion), which represents a multiple of 9.6 times the FY2020 reported EBITDA. An earn-out component of up to USD 5 million (around ZAR 73 million) has also been included, dependent on water levels over a four-year period beginning January 1, 2021.

Imperial's management has indicated that this divestment is an outcome of their initiative to transition to a 'One Imperial' business framework, aimed at enhancing customer service by consolidating various regional operations into a cohesive logistics and market access entity focused primarily on Africa. Prior to this sale, Imperial has already disposed of its European shipping operations.

Industry Overview in South America

The South American logistics sector is characterized by its integration of multiple transport modalities, with waterways being a significant component, especially for bulk commodities. The re

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Hidrovias do Brasil S.A.

invested in

Imperial's South American shipping business

in 2021

in a Buyout deal

Disclosed details

Transaction Size: $90M

Enterprise Value: $90M

Deal Parameters
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Seller type

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