Ricard Coe, Managing Director of manufacturing and distribution company, Fleetwood Jamaica says the company is actively considering an initial public offering and will launch when the timing is right.

Manufacturers for some of Jamaica’s most popular hair and beauty products such as Zimii Haircare and Top Brass, Coe said the company is always looking for ways to expand its presence in the industry.

Celebrating 50 years in business this year, Fleetwood is a major local manufacturing and distribution player. 

The company operates under three branches, Orion Manufacturing is responsible for brands such as Zimii Haircare, Top Brass, Smart Laundry Detergents and Glory Smart Gel: Fleetwood Home Improvement and the recently acquired Starfish Oils.

Speaking on Taking Stock with Kalilah Reynolds, Coe explained that the company acquired Starfish Oils in January following months of negotiations with the brand’s previous owners.

According to Coe, Starfish was struggling to maintain its operations and was looking for a partner to assume control. The Managing Director said a deal was reached within months, that saw Fleetwood taking over the brand Starfish Oils but not the company.

“What we did was to buy the business, not the company. We didn’t buy the legal person i.e. the business that owns the receivables and assumes all of the debt,” he explained.

“What we carved out was the assets of the company, so the inventory, the machinery and the trademarks so those were the assets that we carved out,” he added. 

Coe noted that with this arrangement Fleetwood does not assume any of the liabilities from the brand’s parent company nor can they claim any unpaid monies still owned to the parent company. He also noted that since Fleetwood now owns the trademarks to the brand, they will not have to pay royalties to the parent company.

The Managing Director said the deal cost Fleetwood roughly $70 million, and while he said the company did not take on new debt to finance the deal, he did not share details of exactly how the transaction was funded.

However, Coe said that as the business grows more capital will be needed, and the stock market is one avenue they are considering.

“We are getting advice and having lots of discussions about it. But we have not made a decision as to whether we’re going to be listing or not,” he shared.