Trinidad and Tobago-based AS Brydens & Sons Holdings Limited (ASBH) has secured a significant shareholding in Caribbean Producers (Jamaica) Limited, resulting in a change in the company’s management.

The company announced that it has acquired a 44.8 per cent strategic stake in Caribbean Producers (Jamaica) Limited (CPJ) for an undisclosed amount, and without detailing the specific terms of the transaction. ASBH is now the largest shareholder of CPJ, but the Trinidadian distributor will be pursuing an outright controlling stake in the Jamaican entity.

Our Today understands that ASBH purchased most of the shares from Mayberry Jamaica Equities Limited.

While acknowledging that its acquisition exceeds 20 per cent of the issued share capital of CPJ, ASBH pointed out that such a purchase will trigger the Jamaica Stock Exchange’s General Principles relating to takeovers and mergers and the applicable securities regulations in Jamaica.

“Our strategic stake in CPJ will give ASBH additional scale and expand our geographic footprint beyond
Trinidad, Barbados and Guyana to now include Jamaica and St Lucia,” chairman of ASBH Paul B Scott stated in a release.

CPJ is a leading food and premium beverage distributor for major global brands with a focus on serving hotels and resorts. It operates in Jamaica and St Lucia.

Like CPJ, ASBH is a distributor of fast-moving consumer goods (FMCG) focused on premium beverages, food and grocery. It also has a hardware and houseware division.

In March this year, ASBH purchased a 55 per cent controlling stake in St Michael, Barbados-based retailer and distributor Stansfeld Scott (Barbados) Limited (SSB). The Bajan company is a purveyor of a wide range of beverages such as El Dorado and Plantation rums, Glenfiddich whisky, Stolichnaya vodka, Banrock Station and Lamothe Parrot wines, Twining’s teas, Haliborange vitamins, and Endura Malt 

With this acquisition, ASBH will expand its footprint beyond Barbados, Guyana, and Trinidad and Tobago, into Jamaica and St Lucia,

Scott pointed out that, “Additionally, it will provide ASBH with new capabilities to serve the hotel, resort and restaurant channels and give our business access to hard currency earnings. We look forward to collaborating with the talented team at CPJ to grow the outstanding business they have created.”

For CPJ co-founder Mark Hart, the “acquisition is a good fit for the future” of the entity.

“Succession planning is at [the] forefront of having this strategic investor. ASBH has strong regional ties and this will open several exciting opportunities to grow the company,” he told Our Today.

While sharing that the cofounders of CPJ will remain on the board, Hart also welcomed the chairmanship of Richard Pandohie, the group CEO for ASBH’s sister company Seprod, adding that “he’s a proven and respected leader”.

“We are happy to have him lead the strategic direction of the company,” Hart continued.

Giving more context to the acquisition, Pandohie explained that the single primary reason for the purchase of share is to expand AS Bryden’s portfolio of premium beverages and food brands. Secondly, it will provide a foothold in supplying the hospitality sector.

“CPJ has done quite a really good job in [the hospitality sector], and we don’t have the presence there as we’d like, so their expertise and presence is going to help us to get that in other markets,” he explained to Our Today, adding that the aim is to replicate the CPJ business model across ASBH and SSB to service all of the Caricom markets.

He explained that while ASBH’s acquisition of SSB and CPJ creates new relationships, it will foster the growth of the group that could not be done by any of the businesses by themselves.

Outside of Caricom, Pandohie said that it is looking to also expand into Latin America, beginning with the Dominican Republic, and “we definitely have an eye on that [market]”.