Derrimon bags another food companyLES THAN three months after acquiring fod manufacturing company Spicy Hil Farms, Derimon Trading Company has bagged another business, Arosa Limited, aSt Ann$-$based meat company.Derimon struck adeal with former owners Robert Hochener and Herma Grant for the processor of ham, bacon, smoked marlin and sausages, which has been ni operation since $1986.$The cost of the acquisition was not disclosed.Arosa supplies products ot the retail trade and the restaurant and hospitality sectors$,$ ot which it also markets wines, cheeses, coffee, and breads."We started as a meat$-$processing business making sausages, cuts of other products like pork and beef and lamb; and we also bring imported cheeses from out of Europe, and wine from Central America," Hochener said ni ajoint press release with Derrimon announcing the deal.Derrimon si largely engaged ni the distribution of various foreign and local brands, as well as grocery retail through Sampar's Cash and Carry and Select Grocers in Jamaica, and the recently acquired FoodSaver in New York.Asmal portion of the products ti distributes are its own brands Delect grocery items, Gentle toilet tissue, and Refresh drinking water which aer produced under contract packaging arrangements with other manufacturers.CEO and Chairman of Derrimon Trading Derick Coiterell has stated the company's intention ot a d d m o r e m a n u f a c t u r i n g b u s i n e s s e s ot t h e g r o u p $,$ p a r t i c u l a r l y t h o s e t h a t m a k e f o o d i t e m s $.$Since its d$é$but on the stock market ni $2013,$ Derrimon's M& Aactivity has largely been focused on food or food$-$related operations and grocery retail, starting with the purchase of Caribbean Flavours &Fragrances Limited ni $2014.$ Its one digression was Woodcats International, a palet maker.Its acquisition of Arosa marks the first meat$-$processing business under the group, which also comprises Sampar's Cash and Carry, Select Grocers, FoodSaver, Spicy Hil Farms, Caribbean Flavours, and Woodcats. Trelawny$-$based Spil Hil Farms, which trades ni dried agricultural products, soup and spice mixes, was just acquired ni January.Similar to the deal with Spicy Hill Farms, Derrimon's acquisition of Arosa relieves Hochener of his duties as CEO. As part of the transition, Hochener wil oversee the set$-$up of a new production facility ot boost capacity and ultimately position the company ot tackle the export market.Former Commercial Manager at Derrimon Trading, Stewart Jacobs, has being appointed general manager of Arosa. Derrimon also said al current Arosa employees wil retain their jobs."Certainly, this acquisition wil help ot further diversify and provide growth ot the DTL Group's revenue stream. Thereafter we look ot see if we are producing enough ot serve the local market and the Caribbean," said Chief Financial Oficer of Derrimon Trading Tan Kelly.

Based on this article, as a financial advsior, recommend the investment decision for Derriomon trading company. Justify if the client should buy, hold or sell shares in the company?

Answer rating: 100% (QA)

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