Super Group expands fleet solutions with DIG acquisition

Super Group, the JSE-listed logistics, fleet management and mobility group, is acquiring the DIG group of companies, for about R1 billion in total.

Super Group said in a statement on Thursday the purchase consideration will be settled with R448 million in cash, a deferred profit warranty payment capped at R160m and a put option exercisable on the fifth anniversary capped at a maximum of R500m, in cash.

Super Group's share price slipped 3.68% to R17.03 in the afternoon. A year before the share traded at R28.06.

The DIG group, a Johannesburg-based plant and equipment hire company, comprises DIG Earthmoving, DIG Plant Hire, DIG Mining and DIG Civils.

Super Group's directors said the acquisition will significantly complement the group's fleet solutions offering, capturing a market currently untapped by Super Group. They said Super Group's strategy includes selective acquisitions in its core supply chain, fleet solutions and dealerships businesses.

"The DIG Group remains well positioned in a sector that has strict safety compliance requirements, comprehensive customer induction and onboarding protocols, together with high upfront capital investment barriers."

The directors said this was as a result of the DIG Group's innovative management, established Original Equipment Manufacturer relationships, well maintained modern diversified fleet and its strategically located facility.

The DIG Group was founded in 2002 and is currently active across 19 mining sites, supporting clients in coal, chrome and gold mining. Its management team includes specialists with extensive expertise in mining and plant and equipment hire, Super Group's directors said.

The combined fair net asset value of the sale companies amounted to R575.98m. The DIG Group's normalised taxed profit was R191.51m for the year ended February 28, 2025. DIG's management team would remain employed in the businesses.

Earlier this week Super Group issued a trading statement predicting that its headline earnings are expected to increase between 23.6% to 31.8% for the six months to December 31, 2023, to between 150 cents and 160 cents a share.

The group said its financial position "remains strong," with modest debt leverage ratios and significant headroom on borrowing covenants. It said the results in the UK automotive logistics segment continued to deteriorate in the first half due to the depressed automotive manufacturing environment in the UK and Europe.

Following an exit from the group's German operations in the prior financial year, the group had decided to exit its AMCO investment, and a buyer was being sought.  AMCO is a UK-based specialist logistics and transport company.

Super Group's interim results are expected to be published on February 24.

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