Posted on: Friday, September 26, 2003
Theo Davies assets in Hawai'i reported to be offered for sale
By Andrew Gomes
Advertiser Staff Writer
The Hong Kong-based parent of one of Hawai'i's oldest companies is offering for sale several businesses affiliated with Theo H. Davies & Co. Ltd., including Pizza Hut and Taco Bell restaurants, luxury automobile dealerships and an industrial equipment distributor.
Jardine Matheson Holdings Ltd., a British conglomerate based in Hong Kong, is quietly marketing the Theo Davies assets, according to a person briefed by someone involved in the sale initiative.
On the block are about 50 Pizza Hut and 30 Taco Bell restaurants in Hawai'i, Guam and Saipan. Also for sale are the Mercedes-Benz, Jaguar, Porsche, Land Rover and Honda dealerships operated by TheoDavies Euromotors as well as Pacific Machinery, a Caterpillar dealership and heavy equipment distributor.
Jardine's stake in the Kahala Mandarin Oriental Hawaii hotel is not being offered for sale, according to the person, who asked not to be named because the information was provided in confidence.
Jardine spokeswoman Joanna Sin in Hong Kong declined to say whether the company is trying to sell any of its Hawai'i businesses.
"It is the Jardine Matheson Group's policy not to comment on or discuss any market speculation with regard to the strategic investment plans of any of our businesses," Sin said in an e-mail.
Henry Katsuda, president of Theo Davies, also declined comment.
Gary Wassel, president of TheoDavies Euromotors, and Bob McGarry, Pacific Machinery president, could not be reached for comment.
It is possible that no purchase agreements, which typically would require approval of franchisors, will be reached. But if one or more deals are completed it would further break up one of Hawai'i's largest companies, which Jardine bought in 1973.
Incorporated in 1884, Theo Davies was one of the Big Five businesses that dominated Hawai'i's economy in the plantation era. It later focused on automobiles, shipping, heavy equipment and food service after sugar's decline.
In 1996, Jardine sold what had been Hawai'i's largest shipping agency for many years, TheoDavies Marine Agencies, doing business as Jardine Shipping Agencies, to Norton Lilly International.
About three years ago, TheoDavies sold its Ferrari and Audi dealerships to JN Automotive, followed a year later by the sale of its Volvo dealership to Jackson Auto Group.
Jardine is the biggest international Mercedes-Benz dealer and Pizza Hut franchisee, according to the company, which also has operations in construction, engineering, retail, insurance brokering, real estate and consumer marketing. Last year, Jardine reported $352 million in net profit on $7.4 billion in revenue.
Reach Andrew Gomes at agomes@honoluluadvertiser.com or 525-8065.
