Origin Enterprises to buy Polish firm Kazgod for €22.4m
Irish agricultural group Origin Enterprises has reached an agreement to spend €22.4m to acquire Polish agri-services business Kazgod group.
Under the terms of the deal Origin will acquire 100pc of Kazgod with about €20.3m of the total consideration to be satisfied on completion of the deal. The remaining €2.1m will be deferred and payable three years following completion.
The acquisition is being funded from Origin’s existing banking facilities.
Kazgod specialises in providing agronomy services, inputs and crop marketing solutions. It employs over 200 people and has about 2,600 customers across central and eastern Poland.
For the year to the end of 2014 it had sales of €200m and earnings before interest and tax of €1.2m.
Origin said that the acquisition will augment the company’s existing operations in Poland, which are currently servicing approximately 3,500 largely arable farmers under the Dalgety brand.
Origin chief executive Tom O’Mahony said: “Kazgod, furthers Origin’s strategic development objectives and positions the group as the premier service provider to primary arable producers in Poland.
“The combination of Kazgod and Dalgety will bring benefits through new customer extension opportunity and an enhanced capacity for the development of new and innovative service propositions.”