Origin Enterprises is set to extend its fertiliser blending activities, following the acquisition of the fertiliser activities and certain assets of Bunn Fertiliser Ltd.
Origin Enterprises is a focused Agri-Services group providing on-farm agronomy advice, as well as the supply of crop technologies and inputs.
The group claims to have “leading market positions” in Ireland, the UK, Poland, Romania and Ukraine.
With a brand heritage stretching back over 200 years, Bunn Fertiliser markets a range of technically-based nutrition applications and has an established business-to-business and retail customer franchises.
As well as extending its existing fertiliser blending activities, Origin Enterprises claims that this acquisition will allow it to improve its customer service capabilities and enable the group to optimise operation and logistical efficiency.
Under the terms of the transaction, Origin Enterprises will acquire Bunn Fertiliser, on a debt-free and cash-free basis, for a consideration of £14.2m (€16.4m), payable in cash on completion.
Bunn’s turnover for 2016 was £127.7m (€146.5m) and maintainable earnings before interest and tax (EBIT) were close to £2.8m (€3.2m), figures show.
Completion of the transaction is subject to a number of conditions, which includes obtaining clearance from the Competition and Markets Authority in the UK.
The acquisition is being funded from existing bank facilities and is expected to enhance earnings in the first full-year of ownership.
This business acquisition is set to strengthen the services already provided by Origin Enterprises, 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,” he said.