So you might have heard that AS Bryden has bought out a chunk of shares in CPJ.  But why did they do it? Are they going to seek a majority stake? And what does it mean for you as an investor?

AS Bryden, which is a subsidiary of Seprod, is now the largest shareholder in Caribbean Producers Jamaica (CPJ). CPJ is a premium food and beverage distributor. They mostly service hotels and resorts but they also have CPJ Market, where you can buy all these premium products.

Follow me here. Seprod acquired the Trinidad-based distribution company, AS Bryden, last year. Bryden has a strong foothold in the Eastern Caribbean, including Trinidad, Barbados, and Guyana. 

AS Bryden just bought 44.8% of CPJ. This makes AS Bryden CPJ’s largest shareholder, and expands CPJ’s reach to Jamaica and St Lucia.  Who did they buy the shares from?

Mayberry Jamaica Equities sold its 20% stake in CPJ.  And the rest came from CPJ co-founder Mark Hart through his holding companies, Sportswear Producers and Wave Trading.

We’ve had Mark Hart on Taking Stock a couple of times.  Remember in 2021, CPJ was the number one performing stock on the Jamaica Stock Exchange.  The stock grew 5x in value that year!  

Anyway, Hart will be stepping down as Interim CEO.  He’ll be replaced by Nicholas Hospedales, who is the director of the Food and Grocery Division at AS Bryden. 

Seprod CEO Richard Pandohie will become the new chairman of CPJ.  And co-founder and co-chairman, Tom Tyler, will be his deputy. Tyler, Hart and his wife Candace Hart will all remain CPJ directors.

This is a big move for CPJ, AS Bryden and Seprod. 

As I mentioned before, AS Bryden has a major presence in Trinidad, Barbados and Guyana. Acquiring CPJ gives them a proper entry into Jamaica and St Lucia with a company that already has a built-out clientele and growth strategy. 

The last time Mark Hart was on Taking Stock, he told us that CPJ was tapping into the short-term rental market, to provide supplies to them. They also opened a third CPJ Market location in the ever-growing Drax Hall. Plus with over 6,000 additional hotel rooms expected in Jamaica over the next few years, their core business still looks promising.

And For CPJ, this is a massive deal because they expanded from just two territories, Jamaica and St Lucia to five with AS Bryden. Including Guyana, whose economy is skyrocketing thanks to oil production.  

Seprod has a 54% stake in AS Bryden, so what’s good for them is good for Seprod.

All three companies are listed on the JSE. CPJ is currently in the $10 range following the news of the acquisition. Bryden closed trading on July 15 at $40.43, which is up 22% since the start of the year. And Seprod closed July 15 at $79.

One of Bryden’s directors, Nicholas Scott, said that they intend to buy more CPJ shares to ultimately gain control of the company. So if you’re a CPJ investor, be on the lookout for an announcement from the JSE.

And congratulations to Mark Hart, who’s now living the entrepreneur’s dream.  Build a company and grow it to the point where someone else wants to buy it from you.  Then collect a pretty change and retire with your riches, or move on to the next project.

And that’s the bottom line.