Origin Enterprises Plc Acquir
Origin Enterprises plc acquires a 20% interest in Continental Farmers Group plc
Origin Enterprises plc ('Origin' or 'the Group') announces the acquisition of a 20 per cent interest in Continental Farmers Group plc ('Continental Farmers' or 'the Company').
Continental Farmers is a large scale producer of high value agriculture crops operating in Poland and the Ukraine. Through its founder and Chief Executive, Mark Laird, Continental Farmers has built a successful arable farming business in the Vistula Delta area of Northern Poland over the past 14 years. In 2006 the Company commenced the development of an intensive arable farming operation in the L'Viv region of Western Ukraine. Continental Farmers land holding currently comprises 2,500 hectares ('ha') in Poland and 18,000 ha in the Ukraine.
Origin has subscribed €12 million for new shares in Continental Farmers giving it a 20 per cent shareholding. This investment has been funded through existing bank facilities. Origin will appoint two representatives to the board of the Company.
Continental Farmers primary objective is to significantly extend its farming business in the Ukraine and the funds invested by Origin will be used to accelerate this development.
Commenting on the investment, Tom O'Mahony, Chief Executive of Origin said:
'Continental Farmers is developing a large scale, sustainable farming operation in Eastern Europe combining the benefits of a proven management capability and strong customer relationships. Extensive farming experience in Eastern Europe since its foundation in 1994 ideally positions the Company to manage scaleable growth in the Ukraine.
Concerns relating to global food security are placing increased emphasis on regions capable of significantly increasing output. The Ukraine is uniquely positioned in this regard, with an efficient cost structure and excellent productive capacity that is underpinned by favourable climatic conditions, together with flat, fertile and well drained soils.
The investment in Continental Farmers provides geographic extension opportunities for Masstock, the Group's agronomy and farming systems advisory business, which was acquired in February 2008.'
Mark Laird, Chief Executive of Continental Farmers, commenting on the investment said:
'We are delighted to have Origin as a major shareholder in our business. The key attraction for the Company is the strength of Origin and Masstock's position in supporting primary food production.'
ENDS
3 July 2008
Enquiries:
Origin Enterprises plc
Brendan Fitzgerald, Chief Financial Officer Tel: +353 1 6121259
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, the United Kingdom and Poland, has leading market positions in the supply of feed ingredients, specialist agronomy services, crop nutrition and 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.
IEX ticker symbol: OIZ
AIM ticker symbol: OGN
Website: www.originenterprises.com
This information is provided by RNS
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