Agostini’s Limited is making bold moves to strengthen its presence in Jamaica with the planned acquisition of Massy Distribution (Jamaica) Limited (MDJL) through its subsidiary, Caribbean Distribution Partners Limited (CDPL). The deal, expected to close by the third quarter of 2025, marks a significant expansion of Agostini’s regional footprint in both the fast-moving consumer goods (FMCG) and pharmaceutical distribution sectors.
A Strategic Push into Jamaica
This acquisition represents Agostini’s second major investment in Jamaica in recent years, following its 2023 purchase of pharmaceutical distributor Health Brands Limited for TT$156.42 million ($3.56 billion). With the addition of MDJL, Agostini’s will now have a direct stake in two of Jamaica’s key distribution channels—one specializing in pharmaceuticals and the other in consumer goods.
James Walker, CEO of Agostini’s Pharmaceutical Group, was present at MDJL’s headquarters for the announcement, emphasizing the company’s long-term vision for Jamaica. “This acquisition reinforces our commitment to building a robust supply chain and expanding our market reach in Jamaica,” said Walker.
Integration of Operations and Market Impact
Agostini’s has been strategically consolidating its pharmaceutical portfolio. Following the acquisition of Health Brands, the company shifted its Carlisle Laboratories brands— including Histal, Histatussin, Dica, and Caribe Balsam—from MDJL to Health Brands in early 2024. The addition of MDJL now provides Agostini’s with a well-established consumer goods distribution network, opening opportunities for further integration and expansion.
“Despite economic challenges in 2024, we remain focused on strengthening our owned brands and regional distribution channels,” stated Christopher Alcazar, CEO of CDPL, in Goddard Enterprises Limited’s (GEL) latest annual report. CDPL, a 50/50 joint venture between Agostini’s and Goddard, has been steadily growing since its formation in 2015. The company currently operates across several Caribbean markets, including Trinidad, Barbados, St. Lucia, St. Vincent, Grenada, and Guyana.
Potential Challenges and Workforce Considerations
While the acquisition presents growth opportunities, concerns remain regarding the transition’s impact on MDJL employees. Neither Agostini’s CEO Barry Davis nor Goddard Enterprises representatives have commented on potential workforce changes post-acquisition. Historically, acquisitions in the distribution sector have led to operational restructuring, leaving employees uncertain about their future roles.
However, CDPL’s track record suggests an intent to leverage MDJL’s existing workforce rather than dismantle it. The company has previously maintained operations in newly acquired entities while enhancing efficiency through technology and supply chain optimizations.
Future Outlook and Regional Expansion
CDPL has been aggressively expanding its reach beyond the Caribbean. In May 2023, it acquired an 80% stake in Chinook Trading Canada Limited for TT$62.37 million, strengthening its supply chain to Caribbean markets. More recently, the company opened a Miami office in April 2024, marking its first expansion into North America.
“This expansion strengthens collaboration with existing partners while opening doors to new markets,” Agostini’s stated in its latest annual report. The Miami office will serve as a strategic hub for managing international business relationships and extending Agostini’s brand reach beyond the Caribbean.
Financial Performance and Growth Strategy
Despite economic headwinds, CDPL’s financial performance remains solid. In 2024, the company reported a 5% revenue increase to TT$2.95 billion ($68.56 billion) despite slower consumer spending in Trinidad. However, net profit declined slightly by 1% due to a one-time inventory write-off in St. Lucia. The company’s total assets grew by 8% to TT$2.19 billion, indicating strong financial resilience.
CDPL’s Vemco division has also seen success despite inflationary pressures. The subsidiary implemented strategic price discounting to sustain manufacturing volumes, leading to a 6% growth in proprietary brand sales and a 13% increase in exports.
Looking Ahead
Agostini’s upcoming Annual General Meeting (AGM) on February 13, 2025, at the Hyatt Regency in Port of Spain will provide further insights into the company’s vision for Jamaica. Meanwhile, Goddard and Massy Holdings have already held their respective AGMs, setting the stage for a dynamic year in the Caribbean distribution sector.
With this acquisition, Agostini’s is positioning itself as a formidable player in Jamaica’s distribution landscape. As regulatory approvals and due diligence unfold, the region will be watching closely to see how this strategic move reshapes the competitive landscape of FMCG and pharmaceutical distribution in the Caribbean.
