Directors of private equity firm MFS Acquisition Limited are in the process of exploring growth opportunities for the company’s latest takeover, the St Thomas-based Best Value Discount Pharmacy.

MFS Acquisition recently purchased a 51 per cent stake in the standalone pharmacy in Morant Bay for an undisclosed amount with a view to expand its operations over the next few years. Chairman Dino Hinds outlined that the acquisition is in keeping with the company’s strategy of identifying fast-growing businesses in industries that have potential for scaling.

“We were also looking for opportunities in the eastern end of the island because with the highway going out to [St Thomas], we think it is a good time to look for companies in that area,” he revealed to the Jamaica Observer, adding that MFS Acquisition is also prospecting for real estate opportunities in the parish.

MFS Acquisition was created in 2022 as a special purpose vehicle for the acquisition of 79 per cent shares of listed company SSL Venture Capital on behalf of parent Micro Finance Limited. Since then, the company’s directors have been on the lookout for other acquisition opportunities.

The 51 per cent interest in Best Value Discount Pharmacy will give the private equity company control of the day-to-day running of the business. However, given the limited experience of MFS Acquisition’s directors in operating a pharmacy, the company will in the meantime lean on the expertise of the current management team.

At present, Sasha-Lee Williams, the owner of the remaining 49 per cent of the business, leads Best Value Discount Pharmacy’s management team. She will continue in her capacity as CEO.

Commenting on the transaction, she noted, “This partnership with MFS Acquisition represents a new chapter for Best Value. We are proud of the progress we made over the years and look forward to leveraging the resources and expertise of the MFS team to help us expand our operations and better serve our customers.”

In the meantime, Hinds and the MFS Acquisition team will focus on the “strategic growth” of Best Value Discount.

“We’re looking to see what other locations we can find to open [another pharmacy] in the next six months,” he told Business Observer.

When pressed about the new location, the director shared that so far the investment company has identified one location in Kingston and another in St Thomas. However, he declined providing further details, noting that the company had not yet signed a lease or purchase agreement for the next brick and mortar operation.

Still, Hinds noted that having additional locations in the Corporate Area and St Thomas align with MFS Acquisition’s vision of creating a chain of pharmacies.

Another area of growth he identified was complementing the pharmacy operation and retail business with money services, pointing out that “there is a seamless relationship” between pharmacies and remittance services.

“Yes, so that’s what we’re looking at. We want to ensure that the space would allow us to be able to offer pharmaceutical services but also money services,” Hinds stated.

Over the last two years Best Value Discount Pharmacy generated annual revenue of $100 million from the sales of over-the-counter drugs, prescription drugs, and health and beauty supplies. Hinds believes that adding a money services division and expanding the pharmacy’s franchise to two additional locations will result in the tripling of annual revenue over the next three years.

“We know we have gotten excellent value in terms of what we paid, and we intend to create even greater value,” Hinds explained.

He also shared that as “first movers” in St Thomas, which is poised for growth, MFS Acquisition can achieve its objectives in three to five years.