“We have grown our revenues each year since 2019 by more than 10 per cent annually,” said Caribbean Industrial Systems (CIS) founder and CEO, Andre Hutchinson.

CIS has benefited from the boom in construction since the pandemic and from diversifying its business model into the tools sales, and rental business, on Shortwood Road, Kingston, the  company’s overall head office.

CIS is positioning itself as a bell weather company, spurring economic activity in the manufacturing and exporting sector. It is cognizant that Jamaica and the wider Caribbean will face headwinds in 2023 with an impending US recession, higher global interest rates, increasing inflation, and contracting demand for consumable goods.

Consequently, CIS and Hutchinson want to offer services to contractors on a budget including rental of equipment rather than purchasing. 

The Corporate Note, arranged by Mayberry Investments for CIS, reflects the increased cost of financing at 12 per cent, up from 10 per cent in 2019 when the company initially raised J$ 65 million.

The new funds raised will be employed for  refinancing but also adds about J$ 30 million in net new funds, explained Hutchinson. Mayberry Investments acted as lead broker and arranger to CIS, and TCC – The Contractor Centre.

Rachel Kirlew, Mayberry’s Assistant Vice-President, Investment Banking commenting on the transaction said: “We are happy to have been selected as CIS’s trusted Investment banking firm. We believe the company is poised for growth and its existing initiatives will allow the company to maintain a competitive advantage in the marketplace.”

The company said that this would form part of its series of moves, culminating in a listing on the Jamaica Stock Exchange (JSE) within next two years or by 2024.

Hutchinson  is planning to lay the groundwork for expansion as part of the company’ s intended IPO and listing on the JSE. The funds raised in 2019 went towards acquiring a tools store, Airmark Equipment and Supplies.

CIS renamed it The Contractor Centre (TCC).

Airmark was founded in 1996 by Calvin and Christine Williams, according to Companies Office of Jamaica records. CIS acquired Airmark to create a retail outlet for the company. It sells tools and equipment offered by Airmark but also will cross-sell CIS sealing products and services to clients. CIS operates in Jamaica and Guyana. It provides seal flooring, resin for walls and roofs  to prevent bacteria build-up in restaurants and factories as well as other services.  

CIS started operations in 2013 with shareholders Andre Hutchinson, Gordon Hutchinson,  Fay Hutchinson, Attorney-at-Law Leslie Campbell, Attorney-at-Law Gary Harris, and Rev. Evans Maitland.

 It expanded into Guyana a decade ago, to focus on projects in that market. Croskery Capital, acted as financial advisor to the Hutchinson family, CIS and The Contractor Centre for the transaction.

 Mark Croskery, CEO, of Croskery Capital, added: “We are grateful to be entrusted by CIS and The Contractor Centre to pilot this transaction. It is exciting and empowering to see another SME in Jamaica, go from strength to strength. SMEs are essential to the Jamaican economy, and we see CIS and The Contractor Centre playing a pivotal role together with many of Jamaica’s expansionary sectors, tourism, food and construction in the coming years.”