Origin Enterprises plc has announced the sale of its Belgian fertiliser business, Pillaert-Mekoson in a multimillion euro deal.
Pillaert-Mekoson will be sold to Brokking Group for total consideration of €15.5 million on a cash free / debt free basis, the agricultural services group announced this morning (Thursday, July 1).
The proceeds from the sale shall be used for general corporate purposes, the agribusiness group added.
Dutch-based firm Brokking, through its Triferto fertiliser wholesaling business, operates across Germany, France and the Benelux region.
Commenting on the announcement, Origin chief executive officer Sean Coyle said:
“Since entering the Belgian market in 2018, we have looked to acquire complementary businesses to add further scale to our fertiliser operations in the region.
“Without suitable consolidation opportunities we have therefore decided to exit this market, to focus on markets which offer greater growth potential.
“We would like to thank the Pillaert team for their significant contribution to the group since acquisition and wish them continued success with their new owners.”
Meanwhile, in recent weeks, Origin Enterprises revealed mixed fortunes over the course of the last year in its latest financial report.
Origin Enterprises is “guiding full year financial year [FY] 2021 adjusted diluted earnings per share of between 34.0c and 36.0c, up from 25.69c in FY20”, despite “challenging spring conditions”, the agri-services firm has announced.
Origin issued its financial year 2021 trading update for the three and nine months ended April 30, 2021, this morning (Wednesday, June 16).
The group says it delivered a “satisfactory performance” for the seasonally important third quarter (Q3) considering the adverse impact of prolonged cold weather on farm activity.