50:50 joint venture arrangement used to acquire Geest

Jamaica Producers Group is partnering with Seatrade to acquire one of the longest-serving names in UK shipping, Geest Shipping Line.

With yesterday’s announcement of the sale, the household name of Geest Shipping Line is set to disappear. Seatrade is regarded as the world’s largest reefer shipping operator while Jamaica Producers Group is one of Jamaica’s largest conglomerates and listed on the Jamaica Stock Exchange (JSE).

Both companies have made the acquisition through a 50:50 joint venture arrangement.

Purchase price not disclosed

The purchase price is being kept secret as the purchasers have announced the sale but the purchase price was not disclosed. In a filing to the JSE, Jamaica Producers CEO Jeffrey Hall suggested the deal was part of its vertical integration strategy.

According to Hall, “this acquisition is a key component of JP’s strategy to continue to strengthen and expand its investment portfolio in Caribbean logistics and infrastructure”.

Geest Shipping Line currently operates a transatlantic service between Caribbean ports, loading food exports and Portsmouth in the UK and Vlissingen in The Netherlands.

The service is operated by five reefer vessels with container-carrying capacity, and has Seatrade and Stream Lines as slot charterers. According to the Alphaliner, the five vessels deployed on the service are chartered from Seatrade.

In its 2019 financial results, the Kingston-headquartered JP reported that its Shipping and Logistics business has become a bigger earner than its multinational food producing businesses. The Shipping and Logistics  Division posted a profit of J$3.3 billion (US$22.4 million).

The company also owns the Kingston multipurpose terminal, Kingston Wharves.

Joint statement issued by JP and Seatrade

Both Yntze Buitenwerf, president of Seatrade and Hall said in a joint statement: “Geest Line is a company with a rich history of delivering excellent service to its customers on both sides of the Atlantic over the last 65 years.”

Added the two executives: “We look forward to working alongside Capt Peter Dixon, Geest Line MD, and his highly professional team in the UK as we continue this legacy and support Geest’s next stage of growth.”