Origin announces Brazilian stakeholding acquisition
Origin Enterprises has announced that it has reached agreement to acquire a 65% interest in the Brazil-based Fortgreen Commercial Agricola Ltd.
As part of this transaction, Origin has also agreed to acquire a 20% shareholding in Ferrari Zagatto E Cia Ltd, also based in Brazil.
Fortgreen, which is headquartered in Parana State in southern Brazil, and founded in 2004, is focused on the development of value-added crop nutrition and speciality inputs.
The business, according to Origin, is an “established leader” in the manufacture and marketing of a portfolio of related crop technologies, covering foliar fertilisers, bio stimulants, adjuvants and control release and slow release fertilisers.
Ferrari, founded in 1988, and also headquartered in Parana, is a provider of agronomy services, crop inputs and crop marketing support to grain and speciality crop growers in Parana.
The transactions are subject to a number of conditions and are expected to complete during the first quarter of the 2018/2019 financial year, Origin says.
‘Robust’ third quarter for Origin
Meanwhile, Origin also announced its third quarter performance review today.
The performance during the third quarter principally reflected the adverse impact of unseasonal weather patterns on spring growing conditions and farm activity in general across the group’s operations in Ireland, the United Kingdom and continental Europe.
Since the period end there has been a return to more normal and settled weather conditions, mainly in Ireland and the United Kingdom, which has underpinned a “robust” level of catch-up activity on-farm to-date, according to Origin.
Reflecting the significant seasonality profile of the group’s operations, Origin generates “substantially all of its profits” in the third and fourth quarters of the financial year, the group’s statement read.
Origin Enterprises is a focused agri-services group providing on-farm agronomy services, digital agricultural services as well as the supply of crop technologies and inputs.