Derrimon Trading Company Limited on Friday, January 8, 2021, announced an agreement to secure a controlling stake in FoodSaver New York, Inc (FoodSaver), a wholesale food distributor, and Good Food For Less, LLC (Good Food NY), a specialty supermarket.
The Jamaican company indicated that it has entered into a definitive agreement to acquire control of the Brooklyn, New York-based entities.
Derrimon said it has also incorporated a New York subsidiary, Marnock LLC, which will acquire the Brooklyn-based operations of FoodSaver NY and Good Food NY as a going concern.
The consideration for these acquisitions will 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.
Derrimon indicated that the overall consideration upon completion should be at a value between US$8.9 million and US$9.1 million.
Prior to entering into the agreement, Derrimon said it conducted detailed due diligence on both entities, and it expects that the acquisitions will be completed in the first quarter of 2021.
“Good Food NY’s products are tailored to the needs of the African and Caribbean diaspora located in the New York tri-state area”
Derrimon will finance part or all of the cash consideration for the acquisitions from the net proceeds of an additional public offering (APO) of new ordinary shares now underway.
The APO is fully underwritten by lead broker and arranger Barita Investments Limited.
FoodSaver New York, Inc FoodSaver NY is a wholesale food distributor located at 402 East 83rd Street in New York, across from the Brooklyn Terminal Market, which carries a full line of grocery supplies and produce.
FoodSaver NY’s meat processing facility is USDA certified and serves both standard and customs cuts of meat as well as fresh fish and frozen seafood.
“The company has been in operation for over 23 years and is a recognized and reliable wholesale food distributor to restaurants in the New York tri-state area,” Derrimon stated.
Located at 412 East 83rd Street in New York, USA, Good Food NY is a specialty supermarket.
“Good Food NY’s products are tailored to the needs of the African and Caribbean diaspora located in the New York tri-state area,” Derrimon outlined in its release.
A Junior Market-listed equity on the Jamaica Stock Exchange, Derrimon is a distributor of dry and frozen bulk commodities.
It also operates a retail division through its seven Sampars Cash ‘N Carry locations. Derrimon also sells its own brand of products under the brand name Delect.
The company also operates Select Grocers Supermarket, located in Upper Manor Park Plaza, Saint Andrew, pursuant to a joint venture agreement that gives it a 60 per cent ownership interest in the operations.
Derrimon, additionally, owns approximately 62.02 per cent of Caribbean Flavours and Fragrances Limited (CFF).
The Jamaican company also owns 100 per cent of issued share capital of Woodcats International Limited, which manufactures and distributes wooden pallets and other by-products of wood such as mulch and plastic pallets.