Caribbean Chemicals buys Jamaica company
Date:12-17-2014
AG Chem Plant Limited, a newly-formed Jamaican company and a subsidiary of Caribbean Chemicals and Agencies Limited (CCA), recently signed an agreement to acquire the Agriculture Chemical Plant division (Ag Chem) of Jamaican company J Wray & Nephew, a subsidiary of Gruppo Campari of Italy.
CCA is the largest agricultural input supplier in the English speaking Caribbean and was founded in 1967 by Joe Pires Snr (deceased).
It is based in T&T with offices in Guyana and Suriname and has been a pioneer in the agriculture business for over 47 years to all the Caribbean islands.
The company represents some of the largest brands in the agricultural industry like BASF, Seminis, Jacto, Omex and Miller among others.
AG Chem Plant Limited was formed to acquire the assets of the agricultural chemicals division of J Wray and Nephew, which include a formulating plant, land, buildings, all trade names and chemical registrations and all registrations in other Caribbean Islands where 50 per cent of sales have been for a number of years.
The directors of AG Chem Plant Limited are Joe Pires Jr (Chairman) and Jamaicans Simon duQuesnay, Paul Lalor, Martine Fontaine, Ollie McIntosh, Raymond Miles Jr and Bruce Levy.
Chairman of CCA, Mike Toney said acquisition solidifies CCA’s position as the largest supplier to the Caribbean of inputs into farming.
“Our investment in this deal includes the purchase price of US $8.2 million but when you consider taxes and duties etc. it is just over US$9 million that we would pay on completion of this purchase,” said Toney.
“We are confident that Jamaica and regional agriculture will improve as Caricom governments recognise the need to control their growing food import bill and save foreign exchange. Of importance, is it now also allows CCA to enter markets that it has never entered.”
Managing director of CCA Joe Pires Jr explained that the acquisition of the formulating plant was a strategic step, as it allows the Jamaican subsidiary to supply the rest of the Caribbean with products that are now imported from China and other countries.
“We expect our Jamaican operation to expand its exports in the region by 50 per cent in the next 2-3 years and become a net foreign exchange earner in the same time period”, said Pires.
“AG Chem is operated by Jamaicans and with general manager Graham Dunkley continuing to lead the company we expect to be a good corporate citizen in Jamaica and the region and continue to introduce new technology to reduce our farmers costs.
“We are extremely excited for the potential of this business and foresee a successful and profitable future ahead.”
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