GK looking to Broadspan, PwC to land M&A targets in major markets

Food and financial services group GraceKennedy Limited is tapping into international expertise as it ramps up its M&A programme with an eye on targets in the United States and the region.

The conglomerate expects to become a US$2-billion-operation by 2030, a goal that’s partly built on adding new businesses to its stables.

Last year, GraceKennedy achieved $155 billion in revenue, which translates to US$1 billion, so the company would be looking to double its revenue in hard currency terms to hit its long-term goal. In local currency terms, it would need to maintain an annual average of 10 per cent growth at the top line.

“When you look at our audited accounts and our forecasts going forward, in terms of revenues and profits, we’re on target for meeting our 2030 goals using the strategic plans that we’ve put in place,” GK Group CEO Don Wehby affirmed to the Financial Gleaner.

In pursuit of its inorganic strategy, that is mainly mergers and acquisitions, Wehby said GraceKennedy has appointed investment bankers and advisory services in major markets where they’re looking to acquire companies.

“For the USA and North America, we have appointed Broadspan, an investment banking house, and we have a rather interesting list of acquisition targets for that area. We’ve also appointed PricewaterhouseCoopers for the Caribbean. We have not signed off as yet, but we’re doing the process of engaging an investment banker for the UK and Europe with a list of acquisition targets,” Wehby said.

In recent years, GraceKennedy’s acquisitions have included Scotia Life Insurance Eastern Caribbean, Catherine’s Peak Bottling Company, and spring water bottler Unibev Limited.

“We have a lot of innovation regarding those two brands and we expect a lot of revenue growth from them,” Wehby said, regarding Unibev and Catherine’s Peak, adding that consumers can look for innovation and diversification in products and packaging.

For 2023, GraceKennedy made $8.4 billion in net profit, $7.8 billion of which was attributable to shareholders. Bottom line profit grew 10 per cent relative to 2022.

neville.graham@gleanerjm.com