Seprod Limited [JSE:SEP] has announced that it has arrived at an agreement with its largest owner Facey Group Limited, to acquire its consumer business Facey Consumer at an undisclosed sum, consisting of only Facey’s consumer brands such as Eve and Delight and pharmaceutical products.
Facey is a leading value-added distribution group with operations in the Caribbean, Central America, Europe and the Pacific. Today, Facey is one of the largest private companies domiciled in the Caribbean.
With this acquisition Seprod will be gaining warehousing space and real estate at 53 and 61 Newport Boulevard at Newport West, Kingston. Moreover, the most important part of this acquisition is the leveraging of company’s brand through a larger distribution network.
As was stated leveraging and strengthening the manufacturing company’s distribution platform is its main priority. CEO and Managing Director Richard Pandohie of Seprod, stated “the acquisition of Facey’s consumer business will allow Seprod to take its distribution capabilities to the next level by giving us control of an established, first-class distribution network which is needed to support the continued expansion of our businesses and expand our portfolio of market-leading brands.”
Whereas Seprod’s Board unanimously approved the acquisition of Facey Consumer, it still has some fine details to iron out, such as a definitive legal document and approval from its other shareholders which is scheduled for April 9, according to the Financial Gleaner. Furthermore, Pandohie is of an optimistic view that all will go well and by late June early September of this year this new acquisition will be up and running.
Seprod Limited, together with its subsidiaries, operates through two segments, Manufacturing and Distribution in Jamaica. The company’s products primarily include beverages, cleaning products, dairy products, industrial products, personal care products, produce and distributes consumer goods. The company offers its products primarily under brands such as Miracle, Serge, ButterKist, Pronto, Swizzle, Lider, Monster, Betty and Supligen to name a few. Seprod Limited was incorporated in 1940 and became a public company and was listed on the Jamaican Stock Exchange in 1985.
Currently Seprod Limited is trading at a price of $33.50 and we here at SSL recommend a ‘BUY’ for the manufacturing company, as it has considerable activities in its pipeline.