Massy Holdings said yesterday that it expects to record an accounting loss of approximately US$9.8 million ($66.54 million) on the sale of its Caterpillar-related line of business and related assets in T&T to Machinery Corporation Motors (MACORP). The loss would also include the reorganisation of Massy remaining machinery business, comprising Shell lubricants and trucks, the group said.
In a news release yesterday, Massy said employee severance is set to account for more than half of that projected loss.
Asked how many employees the group envisages will be severed, given that half of the estimated accounting loss would be US$4.9 million or $33.27 million, Massy said, “The numbers are still being finalised and at least 25 per cent of the final number are being retained within the Group.
“Affected employees will have the opportunity to be considered for suitable positions in MACORP and will go through MACORP’s process. Massy is working closely with MACORP to ensure the process is fair and transparent.”
Massy said the transaction is expected to generate gross cash proceeds of approximately US$16 million ($108.64 million).
In the news release, the group said, “This loss from the sale is separate from the cash proceeds Massy expects to receive. Both amounts remain subject to completion adjustments and finalisation of the assets and liabilities transferred.”
Until the sale is completed, Massy Machinery Ltd will continue to operate the Caterpillar-related business and serve its customers. Massy and MACORP will work closely to maintain continuity of service, including arrangements for customer contracts, warranties, parts, service and other ongoing commitments.
The agreement relates specifically to the Caterpillar-related line of business and associated assets. Alongside the proposed sale, Massy said it would align the remaining Massy Machinery businesses with operating structures that best support their activities and growth. This includes placing distribution-focused businesses within the appropriate distribution structure.
“Caterpillar has been part of Massy’s story for nearly a century, and we are proud of that legacy,” said James McLetchie, president and group CEO of Massy Holdings Ltd.
“Our people have built this business, developed trusted relationships with our customers and represented both Massy and Caterpillar with dedication and professionalism. After careful review, we believe MACORP is a strong fit to take the business forward. They bring the Caterpillar expertise, scale and regional knowledge to build on what our teams have created.”
Mr McLetchie added, “Our priority now is to support our people and our customers through this change.”
Massy said the agreement follows a careful strategic review of Massy Machinery Ltd and how its different businesses are best positioned for the future. Massy regularly reviews its businesses and assets to determine how they can best grow, create value and provide opportunities for its people.
In the case of the Caterpillar-related business, the review considered the scale, specialist expertise and regional reach that would best support the business over the long term.
Massy said it is committed to managing this transition with care, respect and fairness. The company said it would honour all applicable commitments and provide practical support to help affected employees prepare for their next role.
MACORP brings significant scale, specialist Caterpillar expertise and a strong understanding of the Caribbean and Latin American markets. With established operations in Guyana, The Bahamas, Colombia, Turks & Caicos, Cayman Islands, Aruba, Bonaire and Curaçao, MACORP supports Caterpillar customers across multiple markets and serves sectors including mining, agriculture, road construction, industry, marine, forestry and electric power generation.
Completion remains subject to regulatory approval and other customary closing conditions. Massy will continue to communicate directly with employees, customers, suppliers and other stakeholders as the process advances.
