VM Investments has taken an undisclosed stake in the Portmore, St Catherine-based manufacturer, Home Choice Enterprise as part of its push into the private equity market. The value of the stake was also undisclosed.

VM Investments, while declining to outline the size of the stake or the cost, said it was “sizeable” and would allow Home Choice Enterprise to expand its business to meet the growing demand for its products. The company which is best known for its pepper shrimp also produces a range of sauces, spices, juices, and condiments for the local and export markets. It also distributes products that are co-manufactured under its own brand, with a range of soup mixes, as well as “Halaal” products which includes its popular Halaal vienna sausages.

“We believe it will be a right partnership and part of the strategic goal to develop the brand locally and overseas,” Kareema Muncey, CEO and chairman of Home Choice Enterprise, told the Jamaica Observer shortly after the signing ceremony at VM Group’s headquarters in Half-Way-Tree, St Andrew.

Muncey said before now, the company had been growing through reinvestment of its profits over the past 22 years it has been in operation.

“We have managed to outgrow that and so now, with the right partnership with VM, we would be able to further realise our dreams.”

Muncey added that with the investment, the company will be “expanding the factory threefold, so we will be able to add new products and get automated”.

“We are looking at tripling production by mid-2023” she added. The hope is that this investment will be the precursor for raising capital in an initial public offering sometime next year, ahead of seeking a listing on the Junior Market of the Jamaica Stock Exchange “by the end of 2024”.

Rezworth Burchenson, CEO of VM Investments, said the deal is part of the company realising its dream to push more into the private equity space by making investments in small and medium-size enterprises.

“Today, as we officially sign an agreement for a private equity investment in Home Choice, we celebrate another promise kept,” Burchenson added. “This investment will empower Home Choice to continue the positive trajectory that it is on, but with the formidable support of VMIL and its team of experts who are fully and faithfully comitted to seeing the business attain unprecedented levels of success. We expect the business to be able to expand its operations and further diversify its offerings while moving deeper into local and international markets,” he continued.

Mark Croskery, chairman and CEO of Croskery Capital and financial advisor to Home Choice, said the company’s growth since 2019 has been explosive, and it was critical to find the right funding partner.

“We had several suitors but it was not just about the money, in our evaluation; it was about the right chemistry, joint values, ethics, and the overall combination that would fit well with Home Choice and their shareholders. We feel confident we have found that with the VM Group,” he said.

The VM Group added that as it has already declared to the public that it wants to do more private equity, and has thus been looking for opportunities.

“VM Investments is now in the private equity space and we know that there are a lot more opportunities out there. A lot more entrepreneurs are looking for the right partner, not only to bring capital but to bring know-how, to bring governance, and to bring the VM infrastructure behind them — and we are saying to those persons, engage us,” Burchenson appealed.

He said the company is now looking at “quite a few” more candidates for private equity investments but was not at liberty to disclose which. He, however, said VM Investments is currently “reviewing over 15 candidates”.