Thursday, June 18, 2015

Business: hardware and Lumber deal moves further along

Kingston, Jamaica, June 16 – GraceKennedy Group CEO Don Wehby has announced that it has entered into the previously reported conditional agreement for the sale of GraceKennedy’s 58.1% shareholdings in Hardware & Lumber Limited (H&L) with Greystone Equity Partners Inc. and/or nominee and who has nominated Argyle Industries (Jamaica) Limited as its nominee.

The transaction terms include a maximum price of J$18.50 per ordinary share with the agreement subject to conditions and with completion anticipated by the end of July.

Mr. Wehby reminded that the agreement is conditional and stated that “GraceKennedy is looking forward to the conclusion of the transaction in a timely manner and will communicate further as soon as it is finalized.” He reiterated that GraceKennedy’s decision to sell its shares in H&L was a strategic one, having regard to its core strategy of expansion in the foods and financial services sectors. He added, “We feel very positive about the continued growth of H&L under the prospective new owners who have signaled that they are excited about the possibilities for the future”.

H&L currently comprises two separate divisions - Rapid True Value — the foremost local supplier of hardware and home improvement products, and the Agro Grace business — local wholesaler and retailer of agricultural products.

There are currently 10 Rapid True Value outlets across Jamaica, along with six AgroGrace Retail Centres. The company is headquartered at 697 Spanish Town Road in Kingston.

Greystone Equity Partners Inc. is described as a Caribbean based and Caribbean focused private equity firm with a stated strong commitment to the Caribbean. The company's website lists the principals as Glegg L Watson, Markus Richards and Ervil Spencer

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