Black Immigrant Daily News
PanJam Investments has sold its 33.3 per cent stake in sauce and condiments business New Castle Company Limited for an undisclosed amount.
New Castle manufactures and distributes jerk sauces and seasonings in addition to other condiments under Walkerswood, Busha Browne’s and Jamaica Joe brands, which it owns.
The sale of PanJam’s stake in New Castle took effect on December 21, 2022, two days before the company received shareholder approval to merge with Jamaica Producers Group.
PanJam is acquiring JP Global Holdings, which holds JP’s operating assets, while JP is to take a 34.5 per cent stake in PanJam.
Post-transaction, PanJam, which will ultimately hold the combined businesses, will be renamed Pan Jamaica Group Limited.
Commenting on the sale of its stake in New Castle, PanJam CEO Joanna Banks said the investment objective in New Castle has been met.
“Our investment in New Castle was in line with PanJam’s strategy to take meaningful equity positions in Jamaican companies with strong brands, foreign exchange earning potential and a global reach,” said Banks.
Banks noted that New Castle has carved a niche for itself in the specialty food space and New Castle is expected to continue on its growth trajectory.
PanJam’s results for the year ending December 2021 show New Castle, contributing $265 million to the company’s share of results of associated companies, driven by increased sales in the US market. The result was a 37 per cent improvement over the 2020 period.
All the same, PanJam will continue to maintain an interest in the specialty food space and now the beverage market as a result of the JP deal.
JP’s Food and Drink Division is the largest contributor to the revenues of the Jamaica Producers Group.
The division earned year-to-date revenues of $14.75 billion, an increase of 16 per cent relative to the year ending December 2020. Profits before finance cost and taxation for the division totalle $575 million, a more than five-fold increase relative to the prior year.
JP owns and operates Hoogesteger Fresh Specialist B.V., a fresh juice manufacturer supplying markets in Northern Europe, and is the largest shareholder of CoBeverage Lab S.L., a fresh juice manufacturer supplying Southern Europe.
Meanwhile, JP’s specialty food interests include Tortuga International, a manufacturer and supplier of Tortuga Rum and Spirit cakes and JP Snacks Caribbean, a regional producer of tropical snacks and frozen ready-to-cook products.
The amalgamation of JP and Pan Jam should occur by March 2023, and the newly created Pan Jamaica Group shares will be issued to JP.
Banks will hold the position of President of Pan Jamaica Group.
The combined heft of JP and PanJam is expected to deliver significant value for all shareholders through a strong and diverse portfolio of businesses in Jamaica, but also on a global scale, the companies said in a joint press release on Monday, November 21, 2022.
PanJam has invested in Jamaica for close to 60 years. It has an expansive real estate portfolio comprised of high-end commercial and hospitality properties and is a well-known leader in real estate management and development.
It is also a successful private equity investor with actively-managed and strategic holdings in an array of speciality food manufacturing and distribution, hospitality and business process outsourcing providers.
PanJam has a significant footprint in the financial services industry through its 30.2 per cent stake in Sagicor Group Jamaica Limited.