Imperial Holdings has bought South African pharmaceutical supply chain group RTT for R500 million.

This acquisition has substantially increased Imperials footprint in the pharmaceutical and consumer healthcare supply chain of the continent.

The collective group of companies known as RTT Health Sciences businesses includes RTT Medical, RTT Trans Africa, RTT Consumer Health and RTT Essentials, as well as 100% of Fuel Africa Logistics, RTT Kenya and RTT Ghana.

The chain delivers medicines and commercial healthcare products in South Africa, and other African countries such as Kenya, Rwanda, Tanzania, Uganda, Ethiopia, Ghana, Ivory Coast and Nigeria.

According to the RTT group website, they show an annual revenue exceeding R2.5 billion.

“The acquisition is earnings enhancing and it is aligned to Imperial’s required return on invested capital. The business is also highly cash generative,” Hubert Brody, CEO of Imperial Holdings, said on Tuesday.