The Courier Guy picked up by Adenia
Private equity firm Adenia Partners has acquired 100% of lastmile delivery and express parcel service provider The Courier Guy, vowing to take the business to “the next level of growth” in SA’s booming e-commerce sector and amid changing consumer expectations.
The Courier Guy is one of SA’s leading courier service providers, offering a wide range of logistics solutions to a diverse clientele in the e-commerce industry.
It boasts an extensive network of delivery partners, 190 kiosks, 22 depots and 1,100 smart lockers across the country and handles millions of packages every year, shipping goods both locally and internationally.
“Partnering with Adenia and its co-investors opens up unprecedented opportunities for us to enhance our service offerings, boost operational efficiencies and accelerate our growth as we look to set new standards within the logistics sector,” said The Courier Guy CEO Craig Pitchers.
“We can’t wait to see what the future holds for The Courier Guy as this collaboration unfolds,” he said.
Since 2002, Adenia has been buying up controlling stakes in founder-led businesses in sectors such as agribusiness, manufacturing, healthcare and renewables. With assets under management of more than $800m, Adenia has successfully executed this strategy.
Through the latest acquisition, the investment firm said it was looking to capitalise on the significant growth opportunities in SA’s last-mile delivery sector, which is driven by the exponential growth of e-commerce and the entry of global marketplace giants in SA.
The financial terms of the transaction were not disclosed.
“The acquisition of The Courier Guy is a significant milestone for us and our esteemed co-investors DEG, Proparco, and South Suez. It underscores our collective belief in the vast potential of the last-mile delivery sector in SA,” said Florent de Boissieu, partner at Adenia.
“Together, we are eager to further enhance The Courier Guy’s market position, stimulate innovation and expand its service offerings to meet the evolving needs of customers in SA and beyond.”
The deal comes as SA’s rapidly rising e-commerce market is expected to reach $16.3bn by 2030, with an annual growth rate of 15%, according to data by market intelligence firm RationalStat.
High interest rates and inflation have put cash-strapped consumers under pressure. But despite the challenges, recent data by The Courier Guy shows that online shopping continues to gain traction, even though many consumers have returned to in-store buying.
The rapid expansion of online retail in SA has highlighted the crucial role of last-mile delivery services in securing customer satisfaction and operational productivity.
According to the report, the growth in total shipments on Black Friday and Cyber Monday was almost tied, with Black Friday marginally ahead at 24.75% year on year in 2023 — indicating that Cyber Monday is growing in popularity in line with Black Friday.
This activity was attributed primarily to an increased adoption of online and marketplace sales, through the likes of Takealot and Massmart. The frequency of purchases has also been increasing.
The acquisition was made through Adenia’s fifth flagship fund, Adenia Capital (V), alongside co-investors the German Development Finance Institution DEG, the French Development Finance Institution Proparco, and African private equity specialist South Suez, the private group said in a statement.
The Courier Guy transaction is the second deal under the Adenia (V) fund — which is set to exceed its $400m fundraising target — after its debut investment in Enfin, a SA-based rooftop solar financing company focused on commercial and industrial clients, in October.
RMB provided debt financing for the transaction, and advisers included PWC for financial and tax due diligence, Webber Wentzel for legal guidance and EY for environmental, social and governance due diligence.
SA’S RAPIDLY RISING E-COMMERCE MARKET IS EXPECTED TO REACH $16.3BN BY 2030, WITH AN ANNUAL GROWTH RATE OF 15%