Finlays Colombo Ltd. (Finlays) has sold its temperature-controlled logistics business in Sri Lanka operating under Finlay Cold Storage (Pvt) Ltd. to Emergent Cold for Rs.3.62 billion, Finlays Colombo’s latest annual report indicated.
Finlays Colombo this January said it signed a sale and purchase agreement with Emergent Cold, but a company statement issued to the press did not mention the value of the deal.
Finlay Cold Storage Ltd., is a state-of-the-art temperature-controlled logistics business, with a cold storage capacity of 14,000 pallet positions. It is the largest of its kind in Sri Lanka, with nationwide service capabilities.
Finlays Colombo Limited has been operating in Sri Lanka since 1893 and is part of Finlays, which itself is part of the worldwide Swire Group of Companies.
Finlays is one of the world’s leading suppliers of tea (in all formats), coffee and botanical extracts to brand owners. It operates a vertically-integrated supply chain spanning tea estates, tea sourcing, and packing; tea, coffee and botanical extraction; and new product development.
A company official said the divestment was targeted at enabling the company to better focus and grow its tea-related business.
Emergent Cold was founded in 2017 with the vision to build a global cold chain solution for multinational customers. Emergent Cold has grown through a combination of business acquisitions and greenfield developments in emerging and developing markets.
Along with its cold storage business, Finlays Colombo has also divested its 50 percent ownership in Finlay Linehaul Express (Pvt) Ltd for a total consideration of Rs.90 million in February this year, while shares of Finlay Rentokil Ceylon (Pvt) Ltd were disposed for Rs.606.7 million in April.