THE investment consortium, New Castle Company, which, in 2009, bought for $350 million in cash 90 per cent of Walkerswood Partners Limited — the holding company for local food processor Walkerswood Group — made $66 million in profit in 2010.

According to Pan Jamaica Investments (Pan Jam), New Castle — which also owns Busha Browne and Jamaica Joe and within which Pan Jam has a 25 per cent stake — revenue climbed from $416 million in 2009 to $673.2 million last year, representing a 61 per cent jump in sales.

The group made $60 million in profit for its first eight months of operations in 2009.

“(New Castle) continues to develop new and existing markets and the contribution to (Pan Jam’s) net profit of $16 million was nine per cent more than 2009 levels of $15 million,” Pan Jam added in its 2010 annual report. “We are delighted to see the Walkerswood and Busha Browne product lines consistently in the retail trade both locally and abroad.”

In May 2009, the consortium, which includes Pan-Jamaican Investment Trust Limited and Associated Manufacturers Limited (AML), producer and local distributor of the Busha Browne and Jamaica Joe lines of sauces, jams and jellies, undertook the investment after creditors agreed to a massive court-approved, debt restructuring that would pave the way for a US$5-million rescue plan.

Walkerswood Group became insolvent after years of losses and racked up $375 million in current liabilities in excess of current assets.

The cash was used for badly needed working capital and the future development of the company.

The buyout deal called for creditors to take as low as 25 cents on the dollar owed to them along with special redeemable preference shares through a Creditors’ Trustee that will entitle them to receive 50 per cent of the consolidated annual net profits of the Walkerswood Group in excess of the first US$2 million for a period of 10 years. Those profit projections were based on strong demand for Walkerswood products in the US and the UK.

After the acquisition, AML’s business was merged with Walkerswood and is producing at both the AML facility in Kingston and at the Walkerswood facility in St Ann.

Pan Jam, which owns 25 per cent of New Castle, reported in its 2010 annual report that New Castle had assets totalling $788 million and liabilities of $317 million, up from $461 million and $147 million, respectively, in 2009.