Massy Holdings Limited has entered into an asset purchase agreement to sell its Caterpillar line of business in Trinidad & Tobago for US$16 million ($25.24 billion) as it redeploys capital across its other objectives.

The investment holding company is expected to sell certain assets and related business interests associated with the Caterpillar (CAT) line of business to Machinery Corporation Motors Limited, a subsidiary of Machinery Corporation of America Inc. (MACORP)

Caterpillar is an American company which manufactures construction, mining and engineering equipment used across the globe. These includes backhoe loaders, hydraulic excavators, bulldozers and motor graders. Machinery Corporation is a private wholesale distributor of construction, mining and excavating machinery and equipment.

“MACORP’s regional scale, established CAT operations and specialist capabilities provide a stronger strategic fit for Massy’s Trinidad CAT business, positioning it within a larger, dedicated regional CAT platform, subject to completion of the transaction,” Massy noted in its disclosure.

However, the sale is expected to result in Massy incurring a US$9.8 million ($15.46 billion or TT$66.54 million) loss if completed. The bulk of the loss will be attributed to employee severance costs since this is a sale of an assets and business interests and not the shares of Massy Machinery Limited.

This is the latest divestment move by Massy Holdings to incur a loss on disposal. Massy sold Massy Distribution (Jamaica) Limited (now Acado Jamaica Limited) to Acado Limited (formerly Caribbean Distribution Partners Limited) on March 1. The sale resulted in it recording a TT$109.75 million (US$16.18 million) loss on disposal which it attributed to the reclassification of TT$137.3 million in accumulated foreign currency translation losses.

Goddard Enterprises Limited, a Barbadian conglomerate which owns half of Acado, reported that the purchase price for Massy Jamaican subsidiary wasbelow the net assets acquired, resulting in a one-time gain on acquisition.

“The group’s strategy has emphasised hard-currency earnings, disciplined capital allocation, cash generation, and operational excellence. We are now updating that strategy to set a bolder, more focused ambition — one that responds to the scale and pace of change in global and regional markets while capturing opportunities where Massy is well positioned to win,” stated Massy’s third quarter (April to June) report.

Massy has spent the last decade concentrating its focus on its three distinct portfolios, known as integrated retail (IR), motors and machines (MM) and gas products (GP). This has seen it exit the information technology & communications

(ITC) segment in September 2020 with a sale to Productive Business Solutions Limited (PBS), sell its 50.5 per cent stake in Roberts Manufacturing Co. Limited to Proven Group Limited in June 2021 and the exit of insurance business in May 2022 to Coralisle Group Limited.

The sale of those businesses has been accompanied by investments into infrastructure and acquisition of new subsidiaries such as IGL Limited in Jamaica, Massy Gas Products Manufacturing (Trinidad) Limited (formerly Air Liquide Trinidad & Tobago Limited) and Rowe’s IGA Group. The company recently opened a 230,000-square-foot warehouse in Orange Grove, Trinidad in March 2026 and recently broke ground on its Massy Hub at Houston, Guyana which will allow for the consolidation of food and pharmaceutical distribution and automotive operations.

Massy Holdings currently has TT$3.88 billion in property, plant and equipment as of June 30.

Massy’s consolidated revenue improved seven per cent to TT$12.65 billion for the nine months period ending June 30, with operating profit down three per cent to TT$772.96 million.

Massy’s profit from continuing operations declined seven per cent to TT$490.79 million, with consolidated net profit 32 per cent to TT$370 million ($8.54 billion) after accounting for the loss from the discontinued operations of Massy Distribution (Jamaica).

“However, this year-on-year movement included transformation investments in technology, safety, and strengthened financial processes and controls, together with the temporary impact of Hurricane Melissa on Jamaica’s tourism market and our businesses there. Jamaica’s recovery is already supporting improving economic activity, and we expect a further rebound early in the next financial year,” Massy explained on the reduced earnings.

Massy’s asset base was marginally down for the nine months period to TT$16.18 billion with cash at TT$1.94 billion. Total liabilities decreased five per cent to TT$7.55 billion with debt at TT$2.90 billion. Equity was up three per cent to TT$8.63 billion, with TT$8.36 billion attributable to shareholders.

The company’s share price on the Trinidad & Stock Exchange (TTSE) is down nine per cent year-to-date (YTD) to TT$3.35 with a market capitalisation of TT$6.63 billion.

Locally, Massy’s share price is up four per cent to $79.20 with a market capitalisation of $156.78 billion.

Massy paid a TT$0.0354 dividend totalling TT$70.07 million on September 25 to its shareholders, with the company paying TT$280.28 million to shareholders for its September 2026 financial year.

Massy’s full year results should be published by November 29 on the JSE.

Patrick Hylton was elected chairman-designate of Massy’s board on June 1. Robert Riley is the current chairman of Massy, taking over from Robert Bermudez in May 2023.