Jamaica Broilers Group entered into an agreement on August 20, 2013, to acquire Hamilton’s Smoke House Limited, a leading local producer and processor of premium quality smoked meats, poultry and pork products. The acquisition will strengthen the Company`s presence in the further processed meats segment and complement the Company`s existing product lines. Completion of the acquisition, which is subject to certain conditions, is expected to be within forty-five (45) days. Under the terms of the transaction, the purchase price is to remain confidential.
This is the second acquisition the company has entered into in just over a month. In July, Jamaica Broilers advised that it has entered into an agreement on July 17, 2013, to acquire a leading producer and broker of broiler hatching eggs in the United States of America. “This acquisition, if concluded, is expected to result in the doubling of JBG`s fertile egg production output in the United States.
The group should benefit from economies of scale from both of these acquisitions when fully integrated. Jamaica Broilers reported a 17 percent improvement in after-tax results for the year to April 2013 with profits of $1.1 billion from a 12.5 percent increase in revenues to $26.7 billion. The group has equity capital of $9.7 billion and total assets of $18 billion at the end of April this year.
Insider call | Jamaica Broilers Group is an IC Insider Buy Rated Stock
[…] 21 percent for the nine months to October, with the latter growing faster than revenue increase. The United States segment has done exceedingly well, with segment profit moving from $202 million in 2013 to $572 million this […]