South Africa logistics provider City Logistics and private equity management company Clearwater Capital have partnered to acquire 100% of the Fastway Couriers franchise in South Africa.
The value of the transaction was not disclosed.
As part of the planned acquisition, Clearwater Capital will take up a 30% minority stake in Fastway, with the majority stake held by City Logistics.
City Logistics previously acquired Fastway’s Cape Town and Durban businesses in 2021.
Following the latest transaction, it will also acquire the Fastway Couriers’ National Master, Fastway Johannesburg, and Fastpost businesses.
City Logistics CEO Ryan Gaines said the acquisition would create one of the largest turnkey logistics providers for the fashion, retail and ecommerce sectors.
“The combined businesses of City Logistics and Fastway offer one of the most affordable delivery options in South Africa for small-to-medium businesses and corporates,” Gaines stated.
City Logistics said the acquisition would allow it to provide existing and future customers with a valuable small parcel solution.
“This is a strategic investment, giving us the opportunity to increase services offered to our existing clients, to serve a new customer base and to provide solutions for a market that requires options to reach their end customers,” said Gaines.
Among the two companies’ major customers are the Mr Price Group, The Foschini Group, and Home Choice.
Gaines said the transaction would also assist the growth opportunity with global ecommerce retailers like Alibaba and Shein, where imports are brought to one central place for final distribution to end customers.
“This is a service that Fastway is likely to develop further in the future,” said Gaines.
Clearwater Capital said entrepreneurship support and job creation were its main reasons for investing.