THE Italy-based Campari Group announced plans to sell its Federated Pharmaceutical Company Ltd, a division of J Wray & Nephew Limited, for US$14.4 million (J$1.6 b) to the Glen Christian-led Kirk Distributors Limited.
It forms part of efforts by the Campari Group, the parent company of J Wray & Nephew, to rid itself of non-core assets in Jamaica.
“The deal consideration is US$14.4 million (11.8 million euro at the current exchange rate) on a cash free/debt free basis. The deal structure foresees various post-closing price adjustments relating to stock and other assets and liabilities,” Campari stated in a release posted on its website on Monday.
The deal, which the company hopes will be completed by March 2015, will allow the Jamaica operations to focus on producing overproof rums, led by Appleton Estate. The Federated Pharmaceutical division of J Wray & Nephew Limited entered Campari’s business in 2012 as part of the overall acquisition of Lascelles deMercado & Company Limited.
The pharmaceutical company was founded in 1958, currently employs over 73 people and manufactures 95 products. It exports to Antigua, Barbados, British Virgin Islands, Cayman Islands, Dominica, Guyana, St Vincent, St Kitts, St Lucia, Trinidad, Turks & Caicos, and the United Kingdom, according to its online company profile.
Campari indicated that the transaction underlines its “strategy of strengthening its focus on its core high-margin spirits business via streamlining of non-core businesses”.
The sale announcement follows a series of earlier divestments by the group in its financial year. Specifically, Campari previously announced that it would exit the consumer agency brand business within the merchandise business in Jamaica during the first quarter 2015.
In August, Campari sold a property by the wharf in Kingston for 2.4 million euro (J$350 million) in order to focus on core activity. The financials avoided listing the purchaser. Concurrently, it announced that it sold a detergent brand for a 200,000 euro loss.
Earlier in its financial year, the group terminated its distribution arrangement for Kimberly-Clark products, which included household names like Kleenex, Scott, and Huggies. That distributorship was acquired by T Geddes Grant.
Campari acquired Lascelles deMercado in December 2012 for US$409 million from Trinidad-based majority shareholder CL Financial, and local shareholders. In September 2012, details of the acquisition indicated that Campari would nearly double Campari’s workforce from 2,300 to 4,300. Since that time, the company embarked on restructuring and announced that it laid off some 200 workers.
Christian, CEO and chairman of Cari-Med Limited and Kirk Distributors Limited, was recently inducted into the Private Sector Organisation of Jamaica (PSOJ) Hall of Fame as its 22nd inductee.
Kirk Distributors, incorporated in 2005, took over the operations and distribution of the Colgate-Palmolive portfolio which includes household names like Colgate toothpaste, Protex, Castile, Carib Carbolic and Refresh bar soaps. They also distribute Ajax, Fabuloso, Soflan, Suavitel and Blue Bomber.
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Campari selling Federated Pharmaceutical for US$14 million
