(File photo)

Derrimon completes acquisition of New York companies

(File photo)

Derrimon Trading Company Limited (DTL) has advised that it has completed the transaction to acquire control of Food Services New York, Inc and Good Food for Less, as per its announcement on January 8, 2021.

DTL also advised that the final consideration was valued at US$8.9 million, coming in at the lower end of the range set out by the company in its initial announcement.

In a notice to the Jamaica Stock Exchange, DTL also disclosed that, as of March 5, 2021, it has bought back all of its 9.0 per cent cumulative redeemable preference shares due 2021, before the maturity date.

To this end, DTL has applied to the JSE for the delisting of the preference ]from the JSE.

The acquisition process

In January, DTL announced that it entered into a definitive agreements acquire controlling stakes in FoodSaver New York, Inc (FoodSaver), a wholesale food distributor; and Good Food For Less, LLC (Good Food NY), a specialty supermarket — both Brooklyn-based entities.

Derrimon said it also incorporated a New York subsidiary, Marnock LLC, to  acquire the Brooklyn-based operations of FoodSaver NY and Good Food NY as a going concern. 

Signage for Good Food NY at the entrance of the operation. (Photo: Tajudeen Oyedele/Google)

The consideration for these acquisitions was 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. 

Prior to entering into the agreement, Derrimon said it conducted detailed due diligence on both entities. Part or all of the cash consideration for the acquisitions was to be financed using the net proceeds from an additional public offering (APO) of new ordinary shares, which raised just over JM$4 billion dollars in February of this year.

FoodSaver New York, Inc 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. 

A delivery truck from Brooklyn Terminal Market parks near FoodSaver New York, Inc in Brooklyn. (Photo courtesy of FoodSaver New York, Inc

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. 

Derrimon said previously, “The company has been in operation for over 23 years and is a recognised and reliable wholesale food distributor to restaurants in the New York tri-state area.”

Good Food NY, the specialty supermarket, is located at 412 East 83rd Street in New York. 

“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 earlier release.

Derrimon, a listed equity on the Junior Market of the Jamaica Stock Exchange, is a distributor of dry and frozen bulk commodities. 

In February, Barita Investments Limited acquired 20 per cent of the company via participation in the APO.