RNS Number : 6987I
Origin Enterprises Plc
20 June 2011
20 June 2011
Origin Enterprises plc
Expansion of Nutrition Services Capability
Origin Enterprises plc ('Origin' or 'The Group') announces that it has reached agreement to acquire the fertiliser activities of Carrs Milling Industries PLC ('Carrs Milling'), CM Fertilisers Limited ('the Company' or 'the Business'). The acquisition furthers the development of the Group's core position in the provision of sustainable agricultural technologies and integrated on-farm advisory services that support the primary sectors of the food industry.
CM Fertilisers Limited, based in Scotland and the North of England, is a leading provider of branded specialist fertilisers together with integrated nutrient management systems servicing the arable, grassland, horticulture and forestry sectors. The Company, which services a complementary geographic footprint, markets an extensive range of technically based nutrition applications that strongly support Origin's existing position in the United Kingdom.
Under the terms of the transaction Origin will acquire 100 per cent of CM Fertilisers Limited for an equity consideration of Stg£19 million plus the working capital related debt at completion which is estimated at Stg£5.9 million. The consideration is based on maintainable earnings before interest and tax (EBIT) of Stg£3.0 million from the Business. Turnover for the year ended 28 August 2010 was Stg£59.3 million and EBIT amounted to Stg£1.9 million.
The transaction is subject to a number of conditions including approval by the shareholders of Carrs Milling and a General Meeting to approve the transaction will be held on 13 July 2011.
The acquisition will be funded from existing bank facilities and is expected to be earnings enhancing from the date of completion, which is expected to follow shortly after the Carrs Milling General Meeting on 13 July 2011.
Commenting on the announcement Tom O'Mahony, CEO of Origin said:
"We are delighted with the acquisition of CM Fertilisers, a highly focused business dedicated to optimising primary producers' crop yield and quality in an environmentally compliant manner.
This acquisition builds upon Origin's commitment to create customised value propositions that meet farmers' needs through new service applications providing for the maintenance of soil fertility and the sustainable improvement to plant nutrition along with an enhanced procurement capability facilitating strategic opportunity to reduce the impact of input price volatility."
Brendan Fitzgerald, Tel: +353 (0) 1 612 1259
Chief Financial Officer
Origin Enterprises plc
Joe Murray Tel: +353 (0) 1 498 0300
Murray Consultants Mobile: +353 (0) 86 253 4950
Goodbody Corporate Finance (ESM Adviser)
Kevin Keating Tel: +353 1 641 9428
Davy (Nominated Advisor)
Ivan Murphy Tel: +353 1 679 6363
About Origin Enterprises plc
Origin Enterprises plc is a focused Agri-Services Group with strategic investments in Consumer Foods and Marine Proteins and Oils. The Group is listed on the ESM and AIM markets of the Irish and London Stock Exchanges. The Agri-Services business through its manufacturing and distribution operations in Ireland, the United Kingdom and Poland has leading market positions in the supply of specialist agronomy services, crop nutrition and feed ingredients.
ESM ticker symbol: OIZ AIM ticker symbol: OGN
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