MAHFOOD
GRACEKENNEDY LIMITED is selling its Medi-Grace Limited subsidiary to Smith Russell & Company Limited, said John Mahfood, chief operating officer of Grace-Kennedy's retail and trading division in a statement.
Mr. Mahfood said the decision by the Jamaican conglomerate to sell Medi-Grace was based on GraceKennedy's strategy to focus on fewer, but larger companies. He explained that while MediGrace Ltd. has been consistently profitable for the last three years, it is relatively small in comparison to the other major industry players.
Over the years, GraceKennedy has divested itself of small businesses in its portfolio.
Medi-Grace distributes pharmaceutical and consumer products, and represents Eli Lilly, Merck Sharp & Dohme, and Pfizer Consumer Health, as well as other companies while Smith Russell & Company Limited distributes pharmaceutical and consumer products. The sale is expected to be completed by August 18.
Mr. Mahfood added that a critical part of the decision was also based on the commitment given by the purchasers to consider current employees of Medi-Grace to fill positions available in the reorganised company. Medi-Grace is expected to continue operating as an independent company focusing on the pharmaceutical industry.
GraceKennedy Ltd. also operates a similar business, which is involved in the distribution of consumer items called World Brands Ltd. Based on the terms of the agreement, certain consumer products with the brand names, Dial, Soft Sheen and Energizer now carried by Medi-Grace will be transferred to World Brands Ltd.
"I am confident that the company will continue to do very well under the new owners supported by a strong team," Mr. Mahfood said.
