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Derrimon Trading chairman and CEO Derrick Cotterell.
Derrimon Trading Company Limited (DTL) has completed the transaction to acquire control of two New York-based food companies for US$8.9 million.
The company, in a notice via the Jamaica Stock Exchange (JSE) said it completed the transaction as a going concern on the terms set out in its announcement on January 8, 2021.
Derrimon has also advised that as of March 5, 2021, it redeemed all of its nine per cent cumulative redeemable preference shares due in 2021. To this end, it has applied to have the preference shares delisted from the JSE.
In January 2021, Derrimon Trading entered into the definitive agreement to acquire control of the Brooklyn-based operations of FoodSaver New York, Inc. (FoodSaver NY), a wholesale food distributor and Good Food For Less, LLC (Good Food NY), a speciality supermarket.
Derrimon Trading says 2020 was a stable year for the company despite the challenges presented by the coronavirus (COVID-19) pandemic.
In comments attached to the company’s annual financial statements, Derrimon’s chairman, Derrick Cotterell, stated that the group experienced an increase in both revenue and profitability from its subsidiaries Woodcats and Caribbean Flavours and Fragrances in addition to several portfolios within the distribution segment.
“The consolidated group and the company’s financial performance were stable during this reporting period” he stated.
Listed on the Junior Market of the Jamaica Stock Exchange, Derrimon Trading is a distributor of dry and frozen bulk commodities.
Derrimon Trading s chairman and CEO Derrick Cotterell (left) and a member of staff at one of the company s local facilities.
Derrimon Trading Company Limited says it has entered into an agreement to acquire control of a food distributor and supermarket in New York.
Led by CEO Derrick Cotterell, Derrimon has incorporated a New York subsidiary, Marnock LLC, which will acquire Brooklyn-based of FoodSaver New York Inc., a wholesale food distributor and Good Food For Less, LLC (Good Food NY), a specialty supermarket.
In a release issued on the Jamaica Stock Exchange (JSE) last week, Derrimon indicated that the consideration for these acquisitions would be in the form of both cash and shares with Marnock LLC issuing a 20 per cent minority interest to Oralcrys LLC, an entity beneficially controlled by the former owner-operator of those businesses.
Distribution company Derrimon Trading Limited, DTL, which operates the Sampars and Select supermarkets, among other businesses, will remain listed on the junior market of the Jamaica Stock Exchange, JSE, despite its pending $3.5-billion capital raise, which will catapult it seven times beyond the limit for that specific market.
Junior companies are not allowed to hold share capital valued above $500 million. Derrimon will be the exception. Right now, its share capital is valued at $140 million, but its total equity is nearly $1.6 billion. Share capital is generally seen as funds to initially seed the business, which, when added to retained earnings and reserves, grows the total capital over time.