Paramount completes asset purchase agreement with US-based Allegheny
Paramount Trading Limited announced on Monday that it has completed an Asset Purchase Agreement with US-based Allegheny Petroleum Products.
The agreement will allow Paramount to acquire the right, title and interest for all the assets of Allegheny that were used and/or were useful in connection with, or necessary for the operation of a joint venture between Paramount and Allegheny, located and operated at 39 Waltham Road, Kingston.
Paramount also said that it has secured licensing rights to make certain and distribute products of Allegheny Petroleum Products, to the entire Caribbean.
In October, Paramount opened a $600 million lubricant plant in partnership with Allegheny Petroleum Products. Products made at the plant include engine, transmission, hydraulic and circulating oil. The plant has a capacity of producing 220,000 gallons of blended oil per day.
The new plant offers oil analysis, technical and engineering services.
In Monday’s announcement via the Jamaica Stock Exchange, Paramount said, “the company has redefined its relationship with Allegheny Petroleum Products Company through a License Agreement and Supply and Distribution Agreement.
The value of the deal was not disclosed.
Paramount, listed on the Junior Market of the Jamaica Stock Exchange, for seven years, has been in operation for 28. It is the local distributor of Sika construction products and Allegheny Petroleum oil and lubricants.
Paramount outlined that the new License Agreement permits the company to use formulae, trademarks and related know-how exclusively for the manufacture of certain Allegheny Petroleum lubricants in Jamaica with exclusive distribution rights to all member states of the Caribbean Community (CARICOM).
Pre-tax profit for the company for the end of the first quarter, August 31, 2019, was up by 92 per cent to $16.7 million.
Net profit of $14.6 million was made on revenues of $360 million, with the company noting some fall off in demand for construction and technical grades.
It was however noted by directors that the company would have the benefit of the new plant and that the “ the positive flow of this development would soon be evident.”