Agostini’s buys Jamaica’s Health Brands

The Trinidad and Tobago Stock Exchange listed Agostini’s Limited signed an Agreement to acquire all the shares of Health Brands Limited, a Jamaican pharmaceutical and personal care distribution company owned by Athol Smith.
The transaction has received regulatory approval and the due diligence process is nearing completion the company stated its release to the Trinidad and Tobago Stock Exchange. It is expected that this transaction will be finalized by the end of June 2023, and we will make a further announcement at that time.
Reports are that the owner approach some Jamaican companies in the sector but apparently, no one was willing to pay the price the seller was looking for. Smith had previously sold his Consumer Brands business to GraceKennedy in 2017, at the time, sales at the company were said to be generating sales of more than $2 billion reports are that the Health Brands revenues could be in the above region as well.
Agostini’s has a market capitalization of TT$4.4 billion with a stock price of $64.04. The company reported revenues of $1.13 billion for the March quarter 16 percent up from $971 million in 2022 with the half year coming in with an increase of 14 percent to $2.4 billion compared to $2.1 billion in the previous year. Quarterly profit attributable to shareholders jumped 43 percent to $63 million over $44 million in 2022 and the half year was up 97 percent to $209 million above the $106 million in 2022.
The company has been in an acquisition mode, acquiring 80% of the outstanding shares of Chinook Trading Canada Limited, a Canadian base consumer products business with trading operations primarily in Caribbean Region. The company states that these acquisitions are consistent with the group’s strategic objective of expansion in more business segments and greater geographical diversification.
Last year December, they acquired Collins and Carlyle business and disposed of Agostini’s Interior contractors division which the group considers is no longer strategically compatible with the group objectives.
For the half year earnings per share was $3.03 up from $1.53 in 2022 with the March quarter delivering EPS of 92 cents compared to 65 cents in 2022 and $2.91 for the 2022 fiscal year.
Shareholders’ equity closed out the half year at $1.55 billion. The stock traded on the TTSE at $64.25 on Friday, up 28 percent for the year.