Paramount makes purchase bid for unnamed firm
PARAMOUNT Trading (Jamaica), a listed company led by businessman Hugh Graham, revealed its intention to acquire assets of an unnamed company.
The deal would bolster the company's $430 million asset base of which half relates to inventory. It has already paid over a portion of funds for the deal, the company declared in its just released financials.
"As at the date these financial statements were signed, the directors were in negotiations with the owners of another company, regarding the purchase of the assets of that company. Although the sale agreement was not yet finalised, an initial amount was paid over by the company on 1 July 2014 towards the completion of the transaction," stated the report.
The financials did not disclose the partial amount paid.
Paramount remains one of the darling companies on the Junior Market as it earns high profits and pays dividends. In furtherance of its growth strategy, it previously indicated plans to buy affordable manufacturing inputs from China to help with its foray into regional markets. These markets could include Cuba and the Dominican Republic.
Paramount currently operates four business units, including the distribution of chemical products; the distribution of SIKA-branded products; manufacturing of commercial cleaning agents; and haulage services.
The company made $93 million profit on $709 million in revenues for its year ending May 31 compared with $73 million in profit a year earlier. Chemicals accounted for 86 per cent of
total sales, followed by construction at 6.2 per cent, manufacturing at 3.5 per cent and transport representing the remainder.
Effective December 31, 2012, Paramount's shares were listed on the Junior Market of the Jamaica Stock Exchange. Consequently, it received a 10-year tax break with the first five years at 100 per cent and the remainder at 50 per cent.