KINGSTON, Jamaica — Khary Robinson, executive chairman of Norbrook Equity Partners (NEP), which recently raised $677.25 million via a preference share issue, says the company is considering listing in the medium term.

Norbrook, a St Lucia-based holding company with operations in Jamaica and the United States, announced on Monday that it had successfully closed private placement of US$5,250,000 ($677.25 million) indexed redeemable preference shares in the capital of the company to a group of accredited institutional investors.

The placement — the first offer to outside investors — was arranged by NCB Capital Markets Ltd.

Robinson told OBSERVER ONLINE that the rate offered on the issue is “under confidentiality with the institutional investor base as per the preference share agreement”.

Otherwise, investors agreed to pay a price of US$1.00 or the Jamaican dollar equivalent for each preference share.

The shares are cumulative, non-voting and non-convertible to common shares in the capital of the company, and are redeemable at the end of five years.

Norbrook indicates that it will use the net proceeds to fund additional acquisition opportunities, refinance existing debt, and for general corporate and working capital purposes.

Robinson told OBSERVER ONLINE, in relation to debt to be retired, that the company is “in late-stage negotiations with a couple opportunities”. He also noted that NEP is in discussions regarding “a potential listing in the near to medium term”.

The company’s current portfolio, consisting of seven companies in logistics, pest control and other areas, is not predictive of future targets.

Robinson asserted: “We are agnostic as seen by our portfolio. We simply look for companies that are in growing industries and that we can add value to through a mix of strategic guidance, operating excellence, capital support, and transactional expertise (add-on acquisitions).”

Norbrook has 240 employees in its operations in the Caribbean and the United States.

Subsidiary Mailpac Services Ltd is an e-commerce logistics provider in Jamaica, which provides e-commerce solutions and package delivery services through a sorting and shipment facility in Miami, Florida, and pickup locations in Jamaica.

In August 2016, Norbrook acquired the Jamaican franchise for Hertz Car Rental through its wholly owned subsidiary Norbrook Car Rental Ltd (NCR), which also became the first Caribbean franchisee to operate Firefly Car Rental, a ‘value’ rental car brand owned by Hertz International.

The company indicates that since acquiring the Hertz franchise, NCR has grown the fleet to more than 330 vehicles and currently operates from two on-airport and two off-airport locations:  Norman Manley International Airport, Sangster International Airport, 28 Sunset Boulevard in Montego Bay, and 109 Old Hope Road in Kingston.

Norbrook’s other subsidiaries include the 4-Evergreen Group, a provider of lawn care and pest control solutions in South Florida, and landscaping provider to “Office Spaces”, a TV show syndicated to FOX and Lifetime.

It also operates Caddiz.com, an online grocery and office supplies delivery service with shop-and-deliver partnerships with Pricesmart and Hi-Lo.

Subsidiary Norbrook Home Delivery offers delivery of five-gallon containers of purified drinking water to homes and offices under the Jam Agua and Blue Mountain Peak Spring Water brands.

Norbrook Trucking Solutions is a less-than-truckload (LTL) transportation and freight delivery service. Norbrook is also a minority investor in various other companies locally and internationally, Robinson said.

The executive declined to reveal company revenues and the performance of business lines, indicating that such information will be made available “if and when” the company lists on an exchange.

He told OBSERVER ONLINE, “We have a strong business and income balance across our group. Our companies are all at various stages of life — from steady state cash generators to high-growth sector leaders.”

NEP was started in 2008 and operates alongside Norbrook Caribbean Investment Company, of which Robinson is also head.

Avia Collinder