Seprod Limited has sold International Biscuits Limited (IBL), the maker of Butterkist and Snackables, in a move CEO Richard Pandohie described as a deliberate step to simplify the group’s footprint, reduce channel conflict, and accelerate deleveraging after a period of regional expansion.
“This transaction represents a deliberate and strategic step in aligning our portfolio with our long-term growth priorities. We are sharpening our operational focus [and] strengthening our balance sheet,” Pandohie said, echoing the company’s formal statement.
Pandohie cited competitive tensions with bakeries as Seprod operates a mill, and IBL which bakes. “We have multiple businesses, [and were] competing with the customer. So that was a reason,” he said.
He added that Seprod had “been looking to sell this over the last few years”, framing the divestment as portfolio optimisation rather than a retreat from manufacturing.
The sale aligns with Seprod’s 2025–2026 focus on cash generation and balance sheet repair following acquisitions that tilted the group towards distribution, including majority control of A.S. Bryden. “We’re focused on generating cash, paying down the leverage, strengthening the balance sheet … it’s consistent with what I’ve been saying,” Pandohie told Financial Gleaner.
Seprod closed 2025 with revenue of $153.6 billion and nearly doubled annual profit to about $5 billion, aided by portfolio adjustments and tighter cost discipline. Finance costs rose with expansion and debt, making deleveraging a logical next step.
Under the terms of the deal, Seprod will continue to distribute IBL’s Jamaica portfolio and maintain export partnerships. “We have been appointed their distributors exclusively for the next five years… we maintain domestic and export distributions,” Pandohie said. The company said the staff will not be affected. “We met with the staff on Friday and informed them … all their terms and conditions remain the same, and there’s no dislocation of staff or anything at this point,” he added.
Seprod has not disclosed the buyer or price. “It’s a private, unrelated company,” Pandohie said.
The divestment underscores Seprod’s pivot to regional distribution scale and select manufacturing platforms where returns are strongest. IBL will continue producing Butterkist and Snackables, along with co-manufacturing for brands such as Ovaltine and Miss Birdie, while Seprod remains distributor for five years.
“We’re not just acquiring, but we’re also optimising,” Pandohie said. Seprod announced the divestment on Saturday, February 28, with immediate effect. Buyer disclosure is expected within a month.
neville.graham@gleanerjm.com
