Petroleum company Regency Petroleum has agreed to acquire the liquefied petroleum gas (LPG) operations of Yaadman Petroleum, a deal that will double Regency’s presence in Jamaica’s cooking gas market.
The acquisition will “no less than double the market share” of Regency’s existing operation, according to Andrew Williams, CEO of Regency Petroleum, in a Financial Gleaner interview.
Both companies declined to disclose the purchase price, but executives described the timing as “perfect on both sides”. Williams confirmed that the acquisition was financed through internal reserves and a “minimal loan”.
Regency, which is listed on the Junior Market of the Jamaica Stock Exchange, “started out in LPG” sales, before branching out to running service stations in western Jamaica.
“We always have a passion for the LPG side of the business,” said Williams.
Regency plans to rebrand the acquired cylinders, though Yaadman’s red colour scheme may remain during the transition. “It will be a Regency Petroleum product,” Williams said.
The deal reshapes the competitive landscape, giving Regency immediate scale, enhanced distribution, and refurbishing capacity. Even with a doubled market share, Regency remains far behind GasPro, the Jamaica LPG leader owned by Trinidadbased Massy Group, which in 2023 acquired rival IGL to reportedly control about three-quarters of the local market.
Miguel Smith, CEO of Yaadman Petroleum, said the divestment allows him to focus on expanding his network of gas stations which remains separate.
“I have a lot of gas station projects in front of me,” Smith said, citing ongoing approvals and new builds across several parishes. “I just need to concentrate on that, financially and all … . Instead of borrowing much more money, at least I can use the capital to basically reinvest into that side.”
Yaadman currently operates four Texaco-branded service stations in Central Village, Priory, Junction, and Knockpatrick. Smith plans additional locations in Georges Plain, Bog Walk, and Mandeville, and has signalled ambitions to pursue a stock market listing for the petroleum arm.
The deal includes Yaadman’s Malvern filling plant, two 12,500-gallon storage tanks, delivery trucks, a cylinder-refurbishing facility, and about 40,000 cylinders in circulation. Regency will also retain 13 employees from Yaadman’s LPG division. “We are ready to go,” Williams said.
Smith noted that his wife, who previously managed the LPG segment, has shifted fully into the fuel retail division.
neville.graham@gleanerjm.com
