Origin Enterprises Plc Acquisition (6744Y)
07 March 2017 - 6:00PM
UK Regulatory
TIDMOGN
RNS Number : 6744Y
Origin Enterprises Plc
07 March 2017
Expansion of Nutrition Services and Distribution Footprint in
UK
7 March 2017
Origin Enterprises plc, the Agri-Services Group ('Origin' or
'the Group'), announces today that it has reached agreement to
acquire the fertiliser activities and certain assets of Bunn
Fertiliser Limited ('Bunn', 'the Business' or 'the
Transaction').
Based in the UK, Bunn is a leading provider of prescription
fertiliser blends and nutrition management systems servicing the
arable, grassland and horticultural sectors. The Business, which
enjoys a brand heritage of over 200 years, markets an extensive
range of technically based nutrition applications and has an
established business-to-business and retail customer franchise. The
Transaction extends Origin's existing fertiliser blending
activities, as well as its customer service capabilities, and will
enable the Group to optimise operation and logistical
efficiencies.
Under the terms of the Transaction, Origin will acquire the
Business, on a debt free and cash free basis, for a consideration
of GBP14.2 million payable in cash on completion. The total
enterprise value of the Transaction, inclusive of estimated average
working capital is expected to be GBP18.2 million, approximately.
Bunn's turnover for the year ended 31 December 2016 was GBP127.7
million and maintainable earnings before interest and tax (EBIT) is
circa GBP2.8 million.
Completion of the Transaction is subject to a number of
conditions including obtaining clearance from the Competition and
Markets Authority in the UK.
The acquisition is being funded from existing bank facilities
and is expected to be earnings enhancing in the first full year of
ownership.
Commenting on the announcement, Origin Chief Executive Officer
Tom O'Mahony said:
"Bunn is an excellent business with a dedicated commitment to
addressing the crop yield, quality and soil fertility requirements
of primary producers. Bunn advances the Group's capacity to manage
supply chain complexity as well as providing complementary customer
and product channel access.
We are looking forward to welcoming everyone associated with
Bunn Fertiliser to Origin Enterprises."
As previously indicated Origin will issue its Interim Results
Announcement for the Half Year ended 31 January 2017 on 9 March
2017.
ENDS
About Origin Enterprises plc
Origin Enterprises plc is a focused Agri-Services group
providing specialist on-farm agronomy services and the supply of
crop technologies and inputs. The Group has leading market
positions in Ireland, the United Kingdom, Poland, Romania and
Ukraine. Origin is listed on the ESM and AIM markets of the Irish
and London Stock Exchanges.
ESM ticker symbol: OIZ
AIM ticker symbol: OGN
Website: www.originenterprises.com
Enquiries:
Origin Enterprises plc
Imelda Hurley
Chief Financial Officer Tel: +353 (0)1 563 4959
Andrew Mills
Investor Relations Officer Tel: +353 (0)1 563 4900
Goodbody (ESM Adviser)
Siobhan Wall Tel: +353 (0)1 641 6019
Davy (Nominated Adviser)
Anthony Farrell Tel: +353 (0)1 614 9993
Powerscourt
Jack Hickey (Ireland) Tel: +353 (0)83 448 8339
Rob Greening (UK) Tel: +44 207 250 1446
This information is provided by RNS
The company news service from the London Stock Exchange
END
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