A.P. Moller Capital to acquire leading frozen logistics operator Vector Logistics
In 2021, RCL FOODS began a journey to reshape its portfolio to create a profitable and sustainable value-added business. As part of this process it announced its intention to separate the poultry and logistics components of its portfolio from its core value-added business, enabling each to be grown through dedicated focus and investment.
After months of extensive engagement to ensure the best possible outcome for all stakeholders, and as per the SENS announcement of 29 March 2023, RCL FOODS has entered into a binding agreement with A.P. Møller Capital (APMC) to purchase the Vector Logistics business. This agreement is subject to approval from the Competition Commission.
APMC is a Denmark-registered fund management company which invests in infrastructure in Africa and other emerging markets. The company is part of A.P. Møller-Maersk, one of the largest international shipping and logistics groups.
Vector Logistics is South Africa’s leading frozen logistics operator, providing multi-temperature warehousing and distribution, supply chain intelligence, and sales and merchandising solutions. The purchase by A.P. Moller Capital provides Vector Logistics with an opportunity to accelerate its mission of “Going Beyond” in supply chain expertise and logistics services, including expanding further afield to meet growing demand in Africa.
“Vector Logistics is highly respected with a long track record in South Africa and we are excited to contribute to its transformative vision for both the industry and the region. 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,” said Joe Nielsen, Partner at A.P. Moller Capital.
For Vector Logistics’ Managing Director, Chris Creed, having the backing of A.P. Moller Capital provides significant potential for greater impact. “Given our vision of transforming the logistics industry, A.P. Moller Capital would be able to help us move up the supply chain maturity curve, particularly from a technological perspective, to support growth, and to support a strong Environmental, Social and Governance (ESG) agenda to ensure a sustainable future for our business and its people,” he said.
“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. We believe that A.P. 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. In addition, this is an important step for RCL FOODS in our journey to reshape the portfolio,” said Paul Cruickshank, Chief Executive Officer of RCL FOODS.
A.P. Moller Capital is committed to maintaining business as usual and minimising any disruption to management, staff, customer, and supplier relationships. Vector Logistics will continue to service its current customers on the basis of its existing contractual agreements.