Mar­gar­i­taville com­pletes ac­qui­si­tion of Ex­press Ca­ter­ing

Jamaica Gleaner - - BUSINESS - Steven Jack­son Se­nior Busi­ness Re­porter steven.jack­son@glean­erjm.com

MAR­GAR­I­TAVILLE CARIBBEAN Lim­ited, led by Ian Dear, has ac­quired the mi­nor­ity stake in Ex­press Ca­ter­ing Lim­ited, which con­trols the bulk of food ser­vices at Ja­maica’s largest air­port, Sang­ster In­ter­na­tional.

Mar­gar­i­taville held 75 per cent of Ex­press Ca­ter­ing up to Au­gust. The ac­qui­si­tion of “all mi­nor­ity shares” was ex­e­cuted in Septem­ber.

“The op­por­tu­nity to pur­chase the mi­nor­ity in­ter­est in that sub­sidiary was pre­sented and it was de­cided to take up the of­fer after re­view­ing our pro­jec­tions and plans for the fu­ture. Ex­cit­ing plans ahead,” said Dear in a mo­bile text con­ver­sa­tion with Gleaner Busi­ness.

He de­clined to give fur­ther de­tails of the trans­ac­tion, which was con­cluded in Septem­ber.

Rev­enues from Ex­press Ca­ter­ing’s Sang­ster In­ter­na­tional op­er­a­tions to­talled US$14 mil­lion in Mar­gar­i­taville’s last fi­nan­cial year, which wrapped up May 2016.

“No fur­ther de­tails can be dis­closed as a part of that agree­ment,” Dear said of the ac­qui­si­tion.

The mi­nor­ity share­holder ap­peared to be God­dard En­ter­prises of Bar­ba­dos, but asked di­rectly, Dear de­clined to re­spond.

“As stated pre­vi­ously, com­ment on that,” he told Busi­ness.

Queries to God­dard were unan­swered up to press time.

Lin­coln Eat­mon and Paula Gil­liesBur­nett are the only listed share­hold­ers in Ex­press Ca­ter­ing, while Dear and John Mas­siah of God­dard Ca­ter­ing’s I can’t Gleaner op­er­a­tions in Ja­maica are listed as two of nine di­rec­tors.

In early 2012, God­dard Ca­ter­ing ex­ited its ca­ter­ing con­tract for ter­mi­nal op­er­a­tions be­yond the se­cu­rity check­points – or ‘post-se­cu­rity’ as the com­pany de­scribed it – at Sang­ster In­ter­na­tional Air­port. The Bar­ba­dian com­pany said then that its joint-ven­ture part­ner Ex­press Ca­ter­ing Lim­ited was awarded the con­tract for all post­se­cu­rity food and bev­er­age op­er­a­tions.

“The board and ex­ec­u­tive man­age­ment team of Mar­gar­i­taville Caribbean Group re­main ex­tremely bullish about the fu­ture earn­ing ca­pac­ity and ex­pan­sion op­por­tu­ni­ties for our group, high­light­ing one of its sub­sidiaries, in par­tic­u­lar, Ex­press Ca­ter­ing,” said Dear, who is chair­man of Mar­gar­i­taville Caribbean.

The com­pany re­ported net profit of some US$182,400 on rev­enues of US$9.2 mil­lion for the first quar­ter end­ing Au­gust 2016. Rev­enues are up six per cent per cent year on year aris­ing from food con­tracts with a new ho­tel in St Thomas, US Virgin Is­lands.

HUGE SUC­CESS

Mar­gar­i­taville Caribbean Group has a part­ner­ship agree­ment with the Wyn­d­ham Va­ca­tion Club Group to pro­vide all the food and bev­er­age of­fer­ings for the first Mar­gar­i­taville Va­ca­tion Club in St Thomas.

“This has been a huge suc­cess, with ad­di­tional lo­ca­tions an­tic­i­pated in the Caribbean in the near fu­ture,” Dear said. Some US$600,000 of rev­enues earned in the quar­ter re­lated to the Wyn­d­ham part­ner­ship.

Mar­gar­i­taville Caribbean is jointly owned by Quan­tum In­vest­ments Hold­ings Lim­ited and Mville In­vest­ments Lim­ited. The com­pany and its sub­sidiaries op­er­ate a num­ber of busi­nesses, in­clud­ing RM Res­tau­rant Lim­ited, Mar­gar­i­taville Turks Lim­ited, Mar­gar­i­taville Ocho Rios Lim­ited, Ex­press Ca­ter­ing, Fal­mouth En­ter­tain­ment Brands Lim­ited, Mar­gar­i­taville St Lu­cia, Port­side Res­tau­rant Group, and Restau­rants of the Caribbean.

In April 2014, Mar­gar­i­taville Caribbean listed its pref­er­ence shares and sub­sidiary Mar­gar­i­taville Turks’ or­di­nary shares on the Ja­maica Stock Ex­change.

Ian Dear, chair­man of Mar­gar­i­taville Caribbean Lim­ited.

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