Fleetwood Jamaica Limited said it has acquired Starfish Oils Limited in a deal worth $70 million. The deal, which was executed in January, sees Fleetwood acquiring the business, operations and assets, including the trademark, of Starfish Oils.

“This acquisition is a major milestone for us,” Richard Coe, CEO of Fleetwood, said about the deal in a release from the company. “We’re incredibly excited about the opportunities for the Starfish Oils brand, and we know that by combining their strengths with Fleetwood’s extensive experience, we will be able to provide even more amazing offerings for our customers,” he added.

Starfish Oils is a producer and distributor of a wide range of aromatherapy products. On the other hand, Fleetwood has over 50 years of expertise in personal care and home improvement products.

“By merging these core qualities, we will solidify our position as a leader in both the manufacturing and distribution industries in Jamaica. We also see incredible opportunities for the Starfish Oils brand internationally,” Coe said in a release.

Starfish Oils has been experiencing growth in top line revenues with that increasing 26 per cent in 2022 to $67.4 million, but racked up a $1.2-million loss in 2022 due to an increase in operating expenses.

However, the expectation is that things would turn around when the financials for the 2023 year are finalised. Based on its six-month financial performance as of June 2023, Starfish Oils is projected to report revenues of $68.7 million while generating $4 million in profits.

“In this acquisition, Fleetwood did not assume the receivables, liabilities, or equity of Starfish Oils,” Coe highlighted. “However, given that Starfish Oils has experienced steady revenue growth but rising operating costs that have limited its profitability, we believe that Fleetwood’s acquisition will allow us to leverage collaborative advantages, streamline operations, and extend the brand’s market reach.”

On the other hand, since its establishment in 1971, Fleetwood has experienced consistent growth across all product lines. The company’s sales for the 2023 financial year recorded over $716 million in revenues and $62 million in net profit.

Fleetwood specialises in two key product lines through two separate divisions: Fleetwood Home Improvements (FHI) and Orion Manufacturing Services (OMS). FHI is a leading manufacturer and distributor of household cleaning and home improvement products, while OMS is the local distributor of personal care brands, including Revlon Inc and Crème of Nature. OMS also manufactures and distributes its own sanitisation, laundry, and personal care lines, such as Smart Hand Sanitisers, Glory Laundry Detergent, and the Amazon top-seller, Top Brass Anti-Dandruff Hairdressing. In 2016, the company established its own haircare brand, Zimii Haircare, which has gained significant traction in the local market, with exports to the United States, Canada, and eastern Caribbean islands.

Meanwhile, established in 1996, Starfish Oils has become a leading aromatherapy brand in Jamaica, known for its diverse products enriched with essential oils, promoting holistic well-being. Its product range includes an extensive collection of soaps, salts, scrubs, mists, oils, and candles. Looking ahead, Fleetwood aims to revitalise Starfish Oils’ product range through contemporary rebranding, introducing new lines like bulk amenities for hospitality and locally sourced essential oils for overseas markets.

The acquisition by Fleetwood marks a significant milestone in its journey towards expansion. Considering potential plans for going public, Fleetwood is poised to leverage its combined strengths to drive innovation, increase profitability, and solidify its position in the market. This strategic acquisition sets the stage for a promising future as Fleetwood continues to pursue its vision of success and expansion. “Starfish Oils is a wonderful brand with a strong following and we’re very confident that we can take the business to another level,” Coe said. “Our goal is to revitalise the Starfish brand, improve operational efficiencies, reduce operating costs and significantly improve growth and profitability over the next 12 months.”