30th Oct 2013 10:30
LONDON (Alliance News) - Origin Enterprises PLC, the agri-nutrition and food products group, said Wednesday that it has reached a conditional agreement to acquire a majority stake in the Ukraine-based agronomy services provider Agroscope.
Origin Enterprises said that it will acquire an initial 60% stake in Agroscope on a cash-free, debt-free basis, for a total cost of USD17.6 million.
The company said also has the option to acquire full control of Agroscope, based on an agreed formula linked to the business's future profitability.
Agroscope is expected to report a pretax profit of USD7.2 million for the year ended December 31, with revenues of USD107.5 million.
Origin Enterprises said the acquisition is being funded from its existing bank facilities, and expects the new business to boost earnings from the date of completion.
"Agroscope is an excellent strategic fit for Origin adding complementary expertise and strong brand reputation on-farm with a dedicated commitment to excellence in customer fulfillment. The acquisition underlines Origin's strategic priority to scale its technology and service portfolios in new markets," Chief Executive Tom O'Mahony said in a statement,
Shares in the agri-services group were up 2.2% Wednesday morning, at 7.31 pence per share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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