Acquisition of Masstock
Origin Enterprises Plc
05 February 2008
Origin Enterprises plc - Acquisition of Masstock Group Holdings Limited
Origin Enterprises plc ('Origin') announces that it has completed the
acquisition of Masstock Group Holdings Limited ('Masstock'). Details of the
transaction were announced on 22 January 2008.
Masstock, with operations in the United Kingdom and Poland, is the leading
provider of specialist agronomy services directly to arable and grassland farm
enterprises.
The initial consideration for the equity share capital of Masstock is Stg£26.3m.
Deferred consideration of up to Stg£10m will be payable based on the achievement
of profit targets over the period to July 2012. Masstock generated a turnover of
Stg£250.6m for the year ending 30 June 2007 and operating profit before non
recurring items and goodwill amortisation amounted to Stg£6.8m. Masstock had net
tangible assets of Stg£23.6m at 30 June 2007 and net debt of Stg£30.6m.
The acquisition is being funded by additional bank facilities and it is expected
that the acquisition will be earnings enhancing for Origin from the date of
completion.
Commenting on the completion of the acquisition, Tom O'Mahony, Chief Executive
of Origin said:
'Masstock provides integrated agronomy services directly to over 10,000 farm
businesses throughout the United Kingdom and Poland. This leading approach
provides a fully integrated production system, based on a superior research and
on-farm agronomy management. The acquisition significantly enhances Origin's
capability to support primary food production combining science with
prescription and precision based farming practice and economics to deliver long
term sustainable farming solutions.'
'Masstock has the capability, expertise and proven ability to respond to the
rapidly changing context for primary food production which combined with the
geographical spread of its business presents a new exciting growth opportunity
for Origin.'
Ends
Enquiries
Origin Enterprises plc
Brendan Fitzgerald, Chief Financial Officer Tel: +353 1 612 1259
Murray Consultants
Joe Murray Tel: +353 1 498 0300
Tel: +353 86 253 4950
About Origin Enterprises plc
Origin Enterprises plc is a leading Agri-Nutrition and Food company listed on
the IEX and AIM markets of the Irish and London Stock Exchanges. The
Agri-Nutrition division, through its manufacturing and distribution operations
in Ireland and the United Kingdom, has leading market positions in the supply of
feed ingredients, crop nutrition and specialist marine proteins. The Group's
Food division, comprising sales, marketing, distribution and manufacturing
activities in Ireland, has leadership positions in ambient food across the
retail, food service and manufacturing sectors. The Group has the benefit of a
substantial operating asset base including a number of significant properties
with development potential located in areas destined for future development and
regeneration.
Website: www.originenterprises.com
This information is provided by RNS
The company news service from the London Stock Exchange
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