Massy Gas Prod­ucts Hold­ings Ltd (MG­PHL) has en­tered in­to a share pur­chase agree­ment with Caribbean Pe­tro­le­um Mar­ket­ing Ltd to ac­quire 100 per cent of the share cap­i­tal of IGL (St Lu­cia) IBC Ltd for US $140.3 mil­lion.

Ac­cord­ing to a no­tice by the T&T Stock Ex­change, the ac­qui­si­tion will rep­re­sent a 7.3 per cent in­crease in the Massy Group’s as­sets and will con­tribute to an in­crease in the group’s prof­it of ap­prox­i­mate­ly 7.1 per cent.

For the gas prod­ucts port­fo­lio, the ac­qui­si­tion is ex­pect­ed to in­crease its prof­it be­fore tax by 29.7 per cent.

IGL (St Lu­cia) IBC Ltd owns 100 per cent of the share cap­i­tal of IGL Ltd, a com­pa­ny that has op­er­at­ed in Ja­maica for six decades and whose pri­ma­ry busi­ness func­tions are the dis­tri­b­u­tion of liq­ue­fied pe­tro­le­um gas (LPG), man­u­fac­tur­ing and dis­tri­b­u­tion of in­dus­tri­al med­ical gas­es and the pro­vi­sion of a range of re­lat­ed ser­vices in both seg­ments.

The no­tice said MG­PHL en­tered in­to the agree­ment on De­cem­ber 19, 2022 and com­ple­tion of the trans­ac­tion re­mains sub­ject to reg­u­la­to­ry ap­proval by the Ja­maican Fair Trad­ing Com­mis­sion.

It said the ac­qui­si­tion of IGL (St Lu­cia) IBC Ltd from Caribbean Pe­tro­le­um Mar­ket­ing Ltd is part of the gas prod­ucts port­fo­lio’s growth strat­e­gy for its liq­ue­fied pe­tro­le­um gas and in­dus­tri­al med­ical gas­es (IMG) busi­ness op­er­a­tion in Ja­maica.

Cur­rent­ly, the gas prod­ucts port­fo­lio op­er­ates in Ja­maica via sub­sidiary com­pa­ny and is al­ready in­volved in the sale of LPG and IMG.

It was on­ly re­cent­ly that T&T’s dis­tri­b­u­tion con­glom­er­ate, Massy Hold­ings ac­quired US gro­cery store chain Rowe’s IGA Su­per­mar­ket for US$47 mil­lion.

The ac­qui­si­tion was made through Massy’s Amer­i­can sub­sidiary, Massy Stores (USA) LLC.

This is the sec­ond com­pa­ny Massy Hold­ings has bought in re­cent weeks.

The pur­chase of the su­per­mar­ket chain came al­most weeks af­ter an­nounc­ing the sale of the T&T busi­ness of French com­pa­ny, Air Liq­uide In­ter­na­tion­al SA to MG­PHL.

The ac­qui­si­tion of Rowe’s IGA su­per­mar­kets was com­plet­ed on De­cem­ber 12 and rep­re­sents a one per cent in­crease in Massy Group’s as­sets and is ex­pect­ed to con­tribute to an in­crease in pre-tax prof­it of ap­prox­i­mate­ly four per cent.