T&T’s distribution conglomerate, Massy Holdings has acquired US grocery store chain Rowe’s IGA Supermarket for US$47 million.
The acquisition was made through Massy’s American subsidiary, Massy Stores (USA) LLC.
This is the second company Massy Holdings has bought in recent weeks.
The purchase of the supermarket chain comes almost two weeks after announcing the sale of the T&T business of French company, Air Liquide International SA to Massy Gas Products Holding Ltd (MGPHL).
A notice posted on the T&T Stock Exchange said the acquisition of Rowe’s IGA Supermarkets was completed on December 12 and represents a one per cent increase in Massy Group’s assets and is expected to contribute to an increase in pre-tax profit of approximately four per cent.
“Massy Stores USA entered into a membership interest purchase agreement with the sole owner of Rowe’s IGA, Robert A Rowe, to purchase 100 per cent of the equity interest of each of the seven limited liability companies within the Rowe’s IGA Group,” the notice said.
For Massy’s integrated retail portfolio, the acquisition is expected to increase its pre-tax profit by seven per cent.
Massy, whose shares are cross listed in T&T and Jamaica, said the acquisition of Rowe IGA is aligned with its integrated retail portfolio’s strategy to expand its retail footprint in the American market.
“The acquisition of Rowe’s IGA, an independent supermarket chain with seven stores in Jacksonville, Florida, is aligned with the Massy integrated retail portfolio’s strategy to expand its retail footprint in the US market. Rowe’s IGA was established in 2005 and is a well recognised brand within the Jacksonville area,” the notice added.
Massy Holdings, which has been in operation since 1923, is a large conglomerate with diversified interests and businesses spanning the Caribbean, including Jamaica.
Regarding Air Liquide a press release explained as a consequence of this divestiture, the approximately 30 employees of this business will be integrated within MGPHL.
It added this transaction is part of Air Liquide’s strategy to regularly review its asset portfolio and focus on selected fast developing areas and activities.
The release also noted that Air Liquide is well-positioned to further grow its presence in Latin America where it intends to pursue the opportunities emerging with the clean energy transition, including hydrogen energy leveraging the area’s abundant natural resources.
