Final price of US$8.9 million comes in at lower end of range

Derrimon Trading Company Limited has closed its acquisition of controlling interest in Food Services New York, Inc. and Good Food for Less, which was announced on January 8, 2021.

Derrimon has advised that the final price was US$8.9 million, coming in at the lower end of the range set out by the Jamaican commodities and distribution company in its prior announcement. Now that the deal is closed Derrimon has a controlling interest or 80 per cent stake in FoodSaver NY and Good Food NY.

The acquisitions will provide Derrimon with greater access to markets and more customers as the company moves to push its products globally. Derrimon, through an incorporation of New York subsidiary Marnock LLC, will acquire control of the Brooklyn-based operations as a going concern.

The consideration for the acquisitions was in the form of both cash and shares and will result in Marnock issuing a 20 per cent minority interest to Oralcrys LLC — an entity beneficially controlled by the former operator of the businesses.

Acquisitions will add to Derrimon’s bottom line

In speaking about the planned acquisitions last January, Derrick Cotterell, Derrimon’s chairman and chief executive officer explained that, “these acquisitions will add significantly to our bottom line, through the foreign currency we will get from the exchange gains. It is already a profitable business and we are going to enhance the operations and make it bigger. We will be adding new lines and see how best we can reduce the cost of exporting goods. The businesses have been doing well and have remained profitable even amid the COVID-19 pandemic.”

He made the point that these overseas locations will be used as a fulfillment centre for shopsampar.com, allowing Derrimon to send products all over the world. Cotterell noted that the acquisitions were also expected to help the company further expand its e-commerce platform, which locally has seen significant growth since the onset of the pandemic.

FoodSaver NY, an over 23-year-old company located at 402 East 83rd Street in New York, adjacent to the Brooklyn Terminal Market, is an entity which carries a full line of grocery supplies and produce along with a meat processing facility. Good Food NY, on the other hand, is a specialty supermarket which carries products targeted to suit the needs of the African and Caribbean Diaspora residing in the popular New York tri-state area