Fri | Jun 2, 2023

Derrimon bags another food company

Published:Friday | April 8, 2022 | 12:11 AM
Derrick Cotterell, chairman and CEO of Derrimon Trading Company Limited.
Derrick Cotterell, chairman and CEO of Derrimon Trading Company Limited.

Less than three months after acquiring food manufacturing company Spicy Hill Farms, Derrimon Trading Company has bagged another business, Arosa Limited, a St Ann-based meat company.

Derrimon struck a deal with former owners Robert Hoehener and Herma Grant for the processor of ham, bacon, smoked marlin and sausages, which has been in operation since 1986.

The cost of the acquisition was not disclosed.

Arosa supplies products to the retail trade and the restaurant and hospitality sectors, to which it also markets wines, cheeses, coffee and breads.

“We started as a meat-processing business making sausages, cuts of other products like pork and beef and lamb; and we also bring imported cheeses from out of Europe, and wine from Central America,” Hoehener said in a joint press release with Derrimon announcing the deal.

Derrimon is largely engaged in the distribution of various foreign and local brands, as well as grocery retail through Sampar’s Cash and Carry and Select Grocers in Jamaica, and the recently acquired FoodSaver in New York.

A small portion of the products it distributes are its own brands — Delect grocery items, Gentle toilet tissue, and Refresh drinking water — which are produced under contract packaging arrangements with other manufacturers.

CEO and Chairman of Derrimon Trading Derrick Cotterell has stated the company’s intention to add more manufacturing businesses to the group, particularly those that make food items.

Since its début on the stock market in 2013, Derrimon’s M&A activity has largely been focused on food or food-related operations and grocery retail, starting with the purchase of Caribbean Flavours & Fragrances Limited in 2014. Its one digression was Woodcats International, a pallet maker.

Its acquisition of Arosa marks the first meat-processing business under the group, which also comprises Sampar’s Cash and Carry, Select Grocers, FoodSaver, Spicy Hill Farms, Caribbean Flavours, and Woodcats. Trelawny-based Spill Hill Farms, which trades in dried agricultural products, soup and spice mixes, was just acquired in January.

Similar to the deal with Spicy Hill Farms, Derrimon’s acquisition of Arosa relieves Hoehener of his duties as CEO. As part of the transition, Hoehener will oversee the set-up of a new production facility to boost capacity and ultimately position the company to tackle the export market.

Former Commercial Manager at Derrimon Trading, Stewart Jacobs, has being appointed general manager of Arosa. Derrimon also said all current Arosa employees will retain their jobs.

“Certainly, this acquisition will help to further diversify and provide growth to the DTL Group’s revenue stream. Thereafter we look to see if we are producing enough to serve the local market and the Caribbean,” said Chief Financial Officer of Derrimon Trading Ian Kelly.