Derrimon Trading Company Limited has announced its entry into a definitive agreement to purchase the entire shareholding of Woodcats International Limited.

Financing has been arranged by Mayberry Investments Limited and the transaction is expected to close within 30 days.

Woodcats was founded by Christopher Collings in 1999, and under his guidance the company has grown from sales of just under $25 million, in its first year, to approximately $450 million in the 2017 fiscal year.

Woodcats offers a full range of pallet solutions including manufacturing pallets for export and warehouse storage, reconditioning and repairing used pallets. The company also provides certified heat treatment services for the export of other wooden products. Additionally it distributes plastic pallets and produces shipping boxes, crates and lobster traps. Woodcats also produces garden mulch which it distributes islandwide under its Summerland brand.

Commenting on the transaction, Collings thanked his employees, suppliers, and customers for their confidence and support over the past 19 years.

“We look forward to your continued support as the company starts an exciting new chapter under the leadership of Derrick Cotterell,” he said.

“Woodcats is poised for further growth, and I am confident that Derrick and his team will open up opportunities in new and related industries. Woodcats has been an important part of my life for almost two decades, but the sale to Derrimon will give me the opportunity to devote more time and energy to my family and my faith,” he also stated.

Collings will remain with Woodcats during the transition period, which ends February 2019.

The other members of Woodcats’ senior management team — Peter Douglas, general manager; and Stephen Collings, assistant general manager — will remain at the company’s helm beyond the transition.

Regarding the transaction, Cotterell, the chairman and chief executive officer of Derrimon, stated that the acquisition will result in Derrimon recognising significant synergies but, more importantly, it will be a new and diverse source of revenue which the company intends to grow.

Derrimon is a public company incorporated under the laws of Jamaica with its registered office located at 233 – 235 Marcus Garvey Drive, Kingston 11.

The company’s ordinary stock units are listed on the Junior Market of the Jamaica Stock Exchange and trade under the ticker DTL.

Derrimon is a distributor of dry and frozen bulk commodities. It also operates a retail division through its seven Sampars Cash ‘N’ Carry locations and one Select Grocers. It also sells its own products under the brand name Delect.

Derrimon is also the parent company of Caribbean Flavours and Fragrances Limited, a public company incorporated under the laws of Jamaica and which is listed on the Junior Market of the Jamaica Stock Exchange, trading under the ticker CFF.

— Balford Henry