Massy buys Florida supermarket chain for US$47m

Massy Holdings has bought a US-based supermarket chain for US$47 million (TT$314.9 million), the conglomerate announced on Wednesday.

Massy completed its acquisition of Rowe’s IGA Supermarkets through its American subsidiary, Massy Stores (USA) LLC on Monday, after the board gave its approval on December 7.

"Massy Stores entered into a membership interest purchase agreement with the sole owner of Rowe's IGA, Robert A Rowe, to purchase 100 per cent of the equity of each of the seven limited liability companies within the Rowe's IGA Group."

Rowe’s IGA is an independent supermarket chain with seven stores in Jacksonville, Florida. It was established in 2005 and is a well-recognised brand within the Jacksonville area.

"The acquisition will represent a one per cent increase in the Massy Group's assets and is expected to contribute to an increase in the groups's profit before tax of approximately four per cent. For the integrated retail portfolio, the acquisition is expected to increase its profit before tax by seven per cent."

This is the Massy group's second bid for a company in recent weeks. Its subsidiary Massy Gas Products Holdings Ltd entered into an agreement with the French company Air Liquide International, on November 28, to purchase for 100 per cent its shares in Air Liquide TT for US$51.5 million-US$58 million.

It anticipates payment of the higher-end range related to an earn-out payable annually based on additional value considerations being met. Completion of the transaction remains subject­ to regulatory approval by the TT Fair Trading Commission.

Air Liquide TT, based in Pt Lisas, makes and supplies industrial gases – oxygen, nitrogen and argon gases – and is aligned to Massy Gas Products' "portfolio strategy to focus operations and its growth agenda on its core business."

In a statement, Air Liquide International announced that it had signed an agreement to divest its TT business and the 30 local employees will be employed by Massy Gas Products.

"This transaction is part of Air Liquide’s strategy to regularly review its asset portfolio and focus on selected fast developing areas and activities.

"Air Liquide is well-positioned to further grow its presence in Latin America where it intends to pursue the opportunities emerging with the clean energy transition, including hydrogen energy leveraging the area's abundant natural resources."