Fleetwood Jamaica Limited (Fleetwood) has announced its acquisition of the business, operations and assets, including the trademark, of well-known aromatherapy solution company, Starfish Oils Limited.
The $70 million acquisition, which occurred in January 2024, saw Fleetwood assuming ownership of both Starfish Oils’ tangible and intangible assets.
Fleetwood is a leading manufacturer and distributor of household cleaning and home improvement products, through its division Orion Manufacturing, the company distributes personal care brands, including Revlon Inc. and Crème of Nature.
Richard Coe, CEO of Fleetwood, described the acquisition of the Starfish Oils as a major milestone for the company.
“We’re incredibly excited about the opportunities for the Starfish Oils brand, and we know that by combining their strengths with Fleetwood’s extensive experience, we will be able to provide even more amazing offerings for our customers. Starfish Oils is a well-loved Jamaican company that offers a wide range of exceptional aromatherapy products. On the other hand, Fleetwood has over 50 years of expertise in personal care and home improvement products. By merging these core qualities, we will solidify our position as a leader in both the manufacturing and distribution industries in Jamaica. We also see incredible opportunities for the Starfish Oils brand internationally.”
In 2022, Starfish Oils experienced a 26.2 per cent year-on-year growth in revenues at $67.4 million, while its pre-tax profit stood at $1.2 million. Effective sourcing relationships and cost management saw the company registering gross profit margins north of 45 per cent since 2019. However, a significant increase in operating expenses has impacted income gains. Total operating expenses were $31.4 million in 2022, the highest expense level recorded in four years. When coupled with foreign exchange, the company incurred a $1.2 million loss, outpacing the increase in income.
Based on its six-month financial performance as of June 2023, Starfish Oils is projected to report revenues of $68.7 million while generating $4 million in profits.
“In this acquisition, Fleetwood did not assume the receivables, liabilities, or equity of Starfish Oils,” Coe highlighted. “However, given that Starfish Oils has experienced steady revenue growth but rising operating costs that have limited its profitability, we believe that Fleetwood’s acquisition will allow us to leverage collaborative advantages, streamline operations, and extend the brand’s market reach.”
Since its establishment in 1971, Fleetwood has experienced consistent growth across all product lines. The company’s sales for the 2023 financial year recorded over $716 million in revenues and $62 million in net profit.
Fleetwood specialises in two key product lines through two separate divisions: Fleetwood Home Improvements (FHI) and Orion Manufacturing Services (OMS). FHI is a leading manufacturer and distributor of household cleaning and home improvement products, while OMS is the local distributor of personal care brands, including Revlon Inc. and Crème of Nature.
OMS also manufactures and distributes its own sanitization, laundry, and personal care lines, such as Smart Hand Sanitizsers, Glory Laundry Detergent, and the Amazon top-seller, Top Brass Anti-Dandruff Hairdressing. In 2016, the company established its own hair care brand, Zimii Haircare, which has gained significant traction in the local market, with exports to the United States, Canada, and eastern Caribbean islands.
Meanwhile, established in 1996, Starfish Oils has become a leading aromatherapy brand in Jamaica, known for its diverse products enriched with essential oils, promoting holistic well-being. Its product range includes an extensive collection of soaps, salts, scrubs, mists, oils, and candles.
Looking ahead, Fleetwood aims to revitalise Starfish Oils’ product range through contemporary rebranding, introducing new lines like bulk amenities for hospitality and locally sourced essential oils for overseas markets.
