Massy holdings acquires Jamaican gas company

MASSY HOLDINGS announced the acquisition of IGL Ltd, a Jamaican-based gas company, in a media release on Wednesday.

The release said, on December 19, Massy Holdings Ltd’s board of directors approved the acquisition of IGL(St Lucia) International Business Company, by Massy Gas Products Holdings Ltd. The company entered into a share purchase agreement with Caribbean Petroleum Marketing Ltd, to buy IGL(St Lucia) for US$140.3 million, which owns 100 per cent of IGL Ltd.

IGL has operated in Jamaica for 60 years as one of the leading distributors of Liquefied Petroleum Gas and the leading manufacturer of industrial medical gasses (IMG).

Massy said the acquisition was part of the company’s strategy to grow its gas products portfolio for its LPG and industrial medical gasses business operations in Jamaica.

“Currently the gas products portfolio operates through a subsidiary company and is already involved in the sale of LPG and IMG,” the release said. “The acquisition will represent an 7.3 per cent increase in Massy Group’s Assets and will contribute to an increase in the group’s profit of approximately 7.1 per cent.”

It added that the acquisition is expected to increase profit before tax by 29.7 per cent.

Last Wednesday the company announced its acquisition of a US-based supermarket chain in Florida, for US$47 million (TT$ 314.9 million). It completed the acquisition after the board gave approval on December 7.

Completion of the acquisition of the gas company remains subject to regulatory approval by the Jamaican Fair Trading Commission.