Fontana Limited, one of Jamaica’s prominent pharmacy and retail chains, has announced a new acquisition that could significantly broaden its reach across the island. The company recently revealed plans to purchase Monarch Pharmacies, currently owned by Gerk Limited—a business associated with the Loshusan family. Though specific terms remain confidential, this strategic move underscores Fontana’s goal of enhancing its services in the health and wellness arena.
Transaction Details and Timelines
The intended takeover was disclosed via a market filing confirming that due diligence is set to begin soon. Subject to closing conditions, Fontana expects to wrap up the deal during its third quarter (January–March 2025). Once the acquisition is finalized, the process of integrating Monarch’s network with Fontana’s seven existing outlets, located in six different parishes, will unfold over the balance of 2025.
CEO’s Vision for Growth
Fontana’s Chief Executive Officer, Anne Chang, expressed enthusiasm about welcoming Monarch’s pharmacies into the Fontana portfolio. “Expanding our presence means we can offer more convenience and better health care options. We believe this acquisition elevates our commitment to delivering exceptional customer experiences across Jamaica,” she said. Although Fontana did not reveal the full structure of the purchase, Chang cited the company’s previous success with acquisitions to illustrate its readiness for growth.
Financial Backing
Fontana’s latest quarterly report shows it had approximately $1.19 billion in cash as of September 30, with The Bank of Nova Scotia Jamaica Limited serving as its primary source of external debt financing. This solid financial footing has enabled Fontana to seize expansion opportunities, exemplified by its earlier purchase of the Azmart business in 2013—a strategic move that resulted in the company’s well-known Barbican branch.
Preserving Monarch’s Legacy
In discussing Monarch’s staff and operations, Chang emphasized that Fontana aims to retain as many employees as possible. “We have a well-established culture, and our goal is to welcome new team members in a way that respects their unique history while also aligning with our longstanding values. We’re still in early days, so we’ll be working through those details in the months ahead,” she said.
Monarch currently operates four pharmacies located in Kingston (Sovereign Centre, Loshusan Plaza, and Tropical Plaza) and Portmore (Sovereign Village). These branches are situated near existing Fontana stores, raising questions about how the two pharmacy chains will function in such close proximity.
Poised for Expansion
With an eye on future developments, Chang noted that the acquisition aligns with Fontana’s broader ambition to scale. “We’re always on the lookout for opportunities that complement our capabilities. This deal helps us extend shared services and strengthens our infrastructure to serve more communities. We have some exciting plans on the horizon,” she added.
Fontana’s revenue for its financial year ended June 2024 reached $8.13 billion, reflecting an 11 percent jump year-over-year. However, increased costs—largely attributed to the newer Portmore location launched in November 2023—led to a slight dip in operating profit to $696.52 million. Despite these expenses, Chang remains confident about Portmore’s contribution and revealed that Fontana might secure additional warehouse space to accommodate expected growth.
Net Profit Shifts and Financial Position
Higher finance charges and a phaseout of Fontana’s full tax remission (previously at 100 percent, now reduced to 50 percent) caused a 10 percent reduction in net profit to $589.78 million. Overall, the company’s asset base stood at $5.68 billion by the close of its June 30 reporting period, supported by current assets of $3.34 billion and total liabilities near $2.77 billion.
Perspective from the Loshusan Family
Commenting on the sale, businessman Bruce Loshusan said, “We’ve spent 35 years building Monarch, and this transition allows us to concentrate on other interests like retail food and property development. We’re confident Fontana Pharmacy will maintain the standards of excellence our customers have come to expect.”
Public records from the Companies Office of Jamaica show that Gerk Limited, associated with the Loshusan family, has been under a removal status referencing beneficial ownership. Meanwhile, another Loshusan-linked company, First Capital Corporation Limited, recently gained approval from the National Environmental and Planning Agency (NEPA) to develop a significant office and commercial complex in New Kingston.
Market and Shareholder Outlook
The news of the Monarch acquisition comes at a time of broader industry activity in the Caribbean, where other pharmacy chains have also been merging or consolidating. Locally, Fontana’s stock price closed at $7.79 on Thursday—a 3.47 percent drop—placing its market capitalization at $9.73 billion. The share price has seen fluctuations, having declined by 19 percent in 2024 after peaking in mid-2023.
Shareholders seeking more insights on the acquisition and the company’s strategy will have the opportunity to engage with Fontana’s leadership at its upcoming Annual General Meeting (AGM), scheduled for March 7 at the Grand-A-View Hotel in Montego Bay. Among the agenda items, the board re-election of Anne Chang, Raymond Therrien, and Larren Peart is anticipated.
This transaction, if completed as planned, is set to reshape Jamaica’s pharmacy retail landscape and could herald a new era of consumer convenience and care.
