Barita Investments Limited (the “Company” or “Barita”) advised that, following the closing of the oversubscribed Derrimon Trading Company Limited (“DTL” or “Derrimon”) Additional Public Offer (APO) of shares, it now owns 20% of the issued and outstanding common shares of DTL. This minority stake acquisition sees Derrimon becoming an associate company of Barita Investments Limited.
Commenting on the investment, Jason Chambers, Director of Barita Investments Limited and Chief Investment Officer of Barita’s parent company, Cornerstone, said: “The Board of Directors of Barita and the leadership team of Cornerstone are very satisfied with this investment as Derrimon embodies several of the characteristics we typically look for in assessing investment opportunities. DTL has built up an enviable track record of growth and value creation, and the management has demonstrated their ability to achieve scale both organically and through the successful integration of several accretive acquisitions. Barita has, over the course of the last two (2) plus years, established significant capacity to expand its portfolio of investments into sectors that are viable alternatives to traditional ones that are now fully priced in our view and therefore not likely to generate alpha for our shareholders in the medium to long term. This minority acquisition should be seen as a by-product of our increased investing capacity as we prudently seek to unearth both value and growth-oriented investment opportunities within the context of the current global investment landscape.”
Chambers continued, “We also note the diversification factor that this investment adds to our portfolio as it provides exposure to the real sector via a company which has recently begun an international expansion. At Cornerstone and Barita, our goal is to positively impact the lives of our stakeholders through the tireless pursuit of opportunities that provide solid risk-adjusted returns throughout their investment horizons. We believe this investment is aligned with that ethos and we look forward to collaborating with the team at DTL to the mutual benefit of our collective stakeholder groups.”
Paula Barclay, General Manager of Barita, in commenting on the Company’s investment in Derrimon stated: “At Barita, we continuously seek out unique strategic opportunities to build shareholder value while balancing the interests of our clients, team members, and other key stakeholders. We are confident that our association with a company like Derrimon will only contribute positively to our overall future performance. Consummating this investment took significant effort from the team at Barita and I would like to take this opportunity to extend my gratitude to them for their hard work.”
About Barita Investments Limited
Barita Investments Limited is a publicly traded company on the Jamaica Stock Exchange (JSE) and majority owned by Cornerstone Financial Holdings Limited. Founded by Rita Humphries-Lewin in 1977, the Company has the distinction of being the oldest stockbrokerage in Jamaica.
Barita is a Securities Dealer regulated by the Financial Services Commission (FSC) and is also a Primary Dealer and Cambio licensed and regulated by the Bank of Jamaica (BOJ). The Company currently operates as a full-
service investment bank offering asset management, stock, and fixed income brokerage, wealth advisory, investment banking, and foreign exchange trading solutions to its clients. Barita currently operates through three locations, it’s Head Office in Kingston and branches in Mandeville and Montego Bay. Barita had over J$290 billion in total assets under management as at its last fiscal year-end, September 2020.
Further information about Barita Investments Limited can be found on its website at www.barita.com.
About Derrimon Trading Company Limited
Derrimon Trading Company Limited is a public company incorporated under the laws of Jamaica with its registered office located at 233 – 235 Marcus Garvey Drive, Kingston 11. Derrimon’s ordinary stock units are listed on the Junior Market of the Jamaica Stock Exchange and trade under the ticker: DTL.
Derrimon is a distributor of dry and frozen bulk commodities. It also operates a retail division through its seven (7) Sampars Cash “N” Carry locations. Derrimon also sells its own brand of products under the brand name Delect. Derrimon operates Select Grocers Supermarket located in Upper Manor Park Plaza, in Saint Andrew pursuant to a joint venture agreement which gives it a 60.00% ownership interest in the operations. Derrimon owns approximately 62.02% of Caribbean Flavours and Fragrances Limited (“CFF”). CFF‟s primary business is the manufacture and distribution of flavours for the beverage, confectionery and baking industries. CFF’s ordinary stock units are listed on the Junior Market of the Jamaica Stock Exchange and trade under the ticker: CFF. Derrimon owns 100% of the issued share capital of Woodcats International Limited (“Woodcats”). Woodcats manufactures and distributes wooden pallets and other by-products of wood such as mulch. It also distributes plastic pallets.
On January 8, 2021, Derrimon Trading Company Limited (“Derrimon”) announced that it entered into a definitive agreement to acquire control of the Brooklyn-based operations of FoodSaver New York, Inc. (“FoodSaver NY”), a wholesale food distributor and Good Food For Less, LLC (“Good Food NY”), a specialty supermarket. Derrimon has incorporated a New York subsidiary, Marnock LLC, which will acquire the Brooklyn-based operations of FoodSaver NY and Good Food NY as a going concern. The consideration for these acquisitions will be in the form of both cash and shares with Marnock LLC issuing a 20% minority interest to Oralcrys LLC, an entity beneficially controlled by the former owner-operator of those businesses.
Further information about Derrimon Trading Company Limited can be found on its website at www.derrimon.com .