Seprod transfers dairy assets inhouse
Seprod Limited has advised that it conducted a transfer of shares that shifted ownership of diary assets directly to itself from large shareholder Musson Jamaica.
The transaction occurred on January 1, 2018, where shares of Musson Holding Limited were transferred, at a nominal cost, from Musson (Jamaica) Limited to Seprod Limited. The cost of the transaction was not fully disclosed.
The diary assets include the iconic Supligen and Betty brands, formerly held by NestlÈ, which Musson acquired in early 2016. Seprod has been running the dairy operation since its acquisition.
Seprod chief financial officer Damion Dodd said the acquisition of the dairy operations, inclusive of the brands, was quite a complex transaction, with many moving parts, that was concluded over an extended time span.
"We thought it best that a special-purpose vehicle, Musson Holdings Limited, be set up to complete the transaction and resolve the kinks prior to full incorporation within the Seprod group," Dodd told the Financial Gleaner.
Seprod is part of the Musson Group, a Jamaican conglomerate with offices and companies in over 30 countries that spans Europe and the Americas. Musson Jamaica holds 45.27 per cent of Seprod shares.
"The incorporation of Musson Holdings Limited and its subsidiaries within the Seprod Group represents the consummation of Seprod's two-year plan to acquire the dairy operations, and is another key milestone in the group's efforts to significantly expand its suite of milk-based products and broaden its reach in the export markets," said a market notice filed by Seprod with the Jamaica Stock Exchange.
Musson Holdings Limited is the parent company of Musson International Dairies Limited, Musson International Dairies Trinidad and Tobago Limited, and Musson International Dairies Republica Dominicana SRL.
A Seprod statement explained that in February 2016, Musson Holdings Limited acquired the brands associated with the Jamaican dairy operations of Nestle Jamaica Limited. On that date, Musson International Dairies Limited acquired the key assets comprising those dairy operations and commenced its principal activity of producing and selling milk-based products from the plant located in Bog Walk, St Catherine. Musson International Dairies Trinidad and Tobago Limited and Musson International Dairies Republica Dominicana SRL were subsequently established to manage the distribution of the milk-based products in key export markets.
Over the last two years, Seprod spent more than $1.2 billion to upgrade its diary subsidiary Serge Island Dairy factory and farm operations. Seprod produces its own dairy products under the Serge Island brand, as well as Betty and Supligen products.