Massy Holdings Limited has signed an agreement with Caribbean Distribution Partners Limited (CPDL) to sell its interest in Massy Distribution (Jamaica) Limited (MDJL) as it continues to realign its strategy in a bid to generate US$4 billion in revenue by 2030.

The announcement took place on Monday as staff at MDJL’s Carifta Avenue headquarters were informed of the developments. Massy Distribution (Jamaica) is a distribution company involved in the distribution of consumer and pharmaceutical products. Some of the consumer products brands that it distributes include Mead Johnson, ConAgra Foods, Quaker, Ekaterra Lipton and Dole while it distributes pharmaceutical products for Sanofi, Denk Pharma, Servier, 3M, Novo Nordisk and Reckitt Benckiser.

Massy Distribution (Jamaica) generated about TT$395.80 million ($9.196 billion) in revenue or four per cent of Massy’s integrated retail portfolio in 2024. This is a significant improvement when compared to 2019 when the company earned about five per cent of the IR portfolio’s revenue with TT$328.74 million (J$6.497 billion). CDPL is a 50/50 joint venture between Agostini’s Limited and Goddard Enterprises Limited.

“Over the past 24 years, our team has successfully built Massy Distribution (Jamaica) into a strong and reputable business. We are proud of what we have achieved and the value we have created. However, we recognise that to take the business to the next level, achieving scale in both retail and distribution is essential. In Jamaica, we didn’t have the scale needed to unlock the full potential of the business, and we found the right partner in CDPL, who can bring that scale and drive further growth. This transition is about ensuring the business thrives in the long term, benefiting employees, customers, and the market as a whole,” stated Massy Holdings in an email to the Jamaica Observer on Tuesday.

Massy sent a release to the Trinidadian media on Monday explaining that achieving success in Jamaica required a fully integrated approach of distribution and manufacturing and/or retail. However, it noted, “While we have established a strong distribution presence in the market, the absence of at least one of the other two components, we believe limits our ability to develop the business to its fullest potential.”

The release explained that Massy expects CDPL will build on the strong foundation established by MDJL and that the transition will bring even greater success to all its stakeholders.

Massy acquired H D Hopwood & Company Limited in July 2001 in what was Massy’s biggest investment in Jamaica at that time. H D Hopwood acquired Marketing & Distribution Limited in 2009 and the retail operations of Kelly’s Three Miles Warehouse in late 2013. The business was rebranded to Massy Distribution (Jamaica) in July 2014 as part of the group’s push to align its brand across all businesses.

Massy can trace its roots in Jamaica as far back as August 1958 through Neal & Massy Investments Limited. Massy expanded its reach through numerous business lines which included T Geddes Grant, IGL (Industrial Gases Limited) and Hi-Lo Food Stores. However, as Massy sought to cauterise those losses and trim the debt on its books, it sold some of these Jamaican businesses, with Hi-Lo being sold to GraceKennedy Limited.

Massy has been involved in numerous business segments in Jamaica over the decades with the company in 2014 owning MDJL, Massy Gas Products (Jamaica) Limited (Gas Pro), Magna Rewards (Jamaica) Limited, Massy Technologies InfoCom (Jamaica) Limited and Massy Technologies Applied Imaging (Jamaica) Limited. It was even a partner with a 40 per cent stake in Cool Petroleum Holdings which operated a network of Shell stations across Jamaica. However, as Massy made the move in 2017 to become an investment holding company with three core business segments, it decided to divest non-core business lines and double down on its core portfolio.

“Jamaica remains a key market for the Massy Group, and we are committed to its growth and development. Our US$140.5-million IGL acquisition in 2023 is the Group’s largest to date and demonstrates our confidence in the country’s economic and people potential.,” Massy added in the press release.

Massy told the Business Observer that it expects the MDJL deal to close by the third quarter (either end of June or September) once regulatory approval for the deal is reached. The company also said, “We would expand our business in Jamaica once we find the right investment opportunities.”

Massy Transportation Group Limited registered a subsidiary in Jamaica during January 2023.

Massy spent 2024 integrating IGL into its portfolio which saw them even hire an integration manager to oversee the process. Both IGL and Gas Pro were able to improve production times and now dominate the packed and bulk LPG market in Jamaica.

Massy’s Jamaican operations with its three subsidiaries generated TT$1.17 billion ($27.28 billion) in revenue and generated TT$137.99 million ($3.21 billion) in profit before tax in 2024. Massy’s Jamaica asset base was TT$974.50 million ($22.64 billion) and spent TT$54.89 million ($1.28 billion) on capital expenditure during the period. When Massy had five subsidiaries in 2014, it generated TT$713.61 million ($12.60 billion) in revenue and TT$50.73 million ($895.44 million) in net profit. Massy’s Jamaican asset base was then TT$371.16 million ($6.55 billion).

Massy will have a board meeting on February 6 to consider an interim dividend payment as the company moves to quarterly dividend payments. This is based on the company’s commitment to improving dividend frequency after recording its highest cash generated from operations in 2024 of TT$1.35 billion.

Massy is currently making several capital investments across its integrated retail, gas products and motors and machines portfolios. As Massy moves towards its 2030 goal of US$4 billion in revenue, it will be focusing heavily on the efficiency of its operations as it plans to have 40 per cent of its future growth come from organic activity while the other 60 per cent will come from inorganic activity which is mergers and acquisitions. This is also in a bid to ensure the group earns more than half of its revenue in hard currency. The conglomerate reported consolidated revenue of US$2.34 billion (TT$15.72 billion) in 2024 and was the largest company on the Jamaica Stock Exchange at the end of 2024.

“Massy is focused on strengthening our key markets and making decisions that drive long-term value. We remain committed to delivering strong, consistent returns for our shareholders as a vehicle for creating intergenerational wealth. At the same time, we continue to invest in the communities we operate in, including Jamaica, and ensure that our businesses create lasting benefits for all our stakeholders,” Massy closed.