Origin shifts from brands to agri-services
Origin Enterprises announced €141m of deals yesterday, exiting an Irish consumer foods venture and snapping up assets in Romania.
Stock market-listed agri-foods group Origin said it had sold its 32pc stake in Valeo Foods, which owns brands including Jacobs, Kelkin, Batchelors and Odlums, to CapVest Partners for €42.5m in cash and €44.1m in settlement of a vendor loan note. London-based CapVest, led by Irish businessman Séamus Fitzpatrick, was already majority owner of Valeo.
Proceeds from Origin's disposal will be used initially to reduce debt and ultimately for investment in agri-services, the company said.
Following the sale Origin will focus mainly on fertiliser and animal feed products, while Valeo, which has been growing through acquisitions and has expanded into the UK, is tipped for a potential stock market listing.
Meanwhile, Origin yesterday also announced agreements to buy the Romania-based Redoxim SRL and Comfert SRL agronomy business for a combined €52.4m in deals funded from existing bank facilities that are expected to be earnings enhancing from the 2016 financial year onwards.