Cambria’s Millchem division, the first accredited Responsible Distribution company in Africa has announced the the acquisition of Chemicals and Marketing Company Ltd, which will make the company a leading chemicals distributor in Malawi.
Our Millchem business will continues to identify opportunities for regional growth
CEO, Cambria Africa PLC
C&M was originally part of British chemicals company ICI and will give Millchem an immediate leading position in Malawi chemicals distribution, including national coverage through C&M’s branches in Blantyre, Lilongwe, and Mzuzu. C&M is being acquired for 5.5m Cambria shares (c.$0.3m) and had sales of US$2.5m and EBIT of US$177k in calendar 2013.
Separately, Millchem has entered into new supply and distribution agreements with Sealed Air Corp in Malawi (customers include Carlsberg and Coca Cola), MEKZ Ltd (paints and coatings) in Zimbabwe, Zambia, Malawi, Namibia and Botswana, Centlube (oil and lubricating wares) in Zimbabwe, Zambia and Malawi adding scale to its business, and Donau Carbon (activated carbon) for all of Southern Africa.
The announcement of the acquisition and of supply and distribution agreements show Cambria is making progress expanding into the region and the opportunities for earnings enhancing acquisitions.
About Cambria Africa PLC
Cambria Africa Plc, quoted on the AIM market of the London Stock Exchange, is a long-term, active investment company, building a portfolio of investments primarily in Southern Africa. Cambria’s Millchem division was founded in 1983 and initially supplied chemicals to the glass and textiles industries. The success and growth of the company has seen expansion into more industries and as such positioned Millchem as a supplier of specialized chemicals and machinery.