Everything Fresh to acquire meat processor
Published:Wednesday | January 2, 2019 | 12:00 AM
Kingston-based Everything Fresh Limited, which mainly sells imported food to the hotel trade, said a pending acquisition of a meat processor will more than double its staff to 65 while allowing it entry into local manufacturing.
The name, location and financial details of the entity remain undisclosed pending the close of the deal on February 14. The acquisition of the meat processor will add 40 persons to the existing 25 employees at Everything Fresh.
"Manufacturing tends to be labour-intensive," explained Gregory Pullen, chairman of Everything Fresh, in an interview with the Financial Gleaner on Wednesday.
"We are still at the letter of intent and memorandum of understanding stage, so it would be improper to reveal details of the deal," said Pullen.
Everything Fresh Limited signed and entered into a memorandum of understanding and letter of intent with the local meat processor on December 14, 2018.
"I can say it will see us venturing into manufacturing," he said, adding that it would see them develop relationships with several farmers and allow Everything Fresh to sell new product lines which, prior to now, were impossible due to import restrictions.
"It will substantially increase our product line available for sale," Pullen said, while also declining to state the location of the processor. He stated, however, that it was relatively close to key clients of Everything Fresh, which hinted that it is somewhere close to the north coast.
The acquisition will allow Everything Fresh to reduce costs for final deliveries of products to customers due to manufacturing and logistical efficiencies, given its location to clients. Pullen indicated that the board of directors of Everything Fresh previously agreed to look at other acquisitions as a means of fuelling its growth in the medium term.
The company reported a net loss of $17.5 million for its September 2018 third quarter, reflecting a 256 per cent dip year-on-year on the 9.2 million profit after tax in the corresponding 2017 quarter. Revenues were also down to $422 million versus $450.2 million a year earlier.
On June 22, Everything Fresh's shares were listed on the junior market of the Jamaica Stock Exchange. Total assets of $813 million increased 71 per cent from $338 million a year earlier due to a rise in cash arising from the listing and additions to plant and equipment.