Agri-services firm Origin in €40m Brazilian deal
Argi-Services firm Origin Enterprises has completed the acquisition of a 65pc stake in Brazilian-based Fortgreen Commercial Agricola.
Under the terms of the deal, Origin has initially paid BRL179m (€41.3m) for the speciality nutrition and crop inputs business company, in a deal first reported in June.
An additional consideration of up to BRL39m (€9m) will be payable in 12 months, based on the achievement of specific profit targets.
In the year to 31 December 2017, revenue and adjusted earnings at Fortgreen were BRL123m (€28.4m) and BRL40m (€9.3m) respectively.
Meanwhile, a separate transaction to acquire a 20pc share in Brazilian based agronomy services and crop input distribution business, Ferrari Zagatto E Cia, is expected to be completed during the first half of Origin's 2018/2019 financial year.
Origin, which already has a market presence in Ireland, the UK, Belgium, Poland, Romania and Ukraine, said that the investments underline its priority to scale its technology and service portfolios in markets which provide "tangible growth opportunities".
"The transactions also provide the platform to address the group's requirements for meaningful geographical diversification and seasonality balance," the company said.
Last month, Origin appointed Brendan Corcoran to the role of head of investor relations and group planning.
Mr Corcoran, who has extensive agri-business experience in a corporate banking career spanning more than 13 years, will commence the role in September.
He moves to Origin from HSBC Corporate Banking, where he was relationship director leading the agri, food and beverage portfolio, with responsibility for advising and supporting corporates in the sector.
Before joining HSBC in 2010, Mr Corcoran was a senior relationship officer at AIB Capital Markets.
Shares in Origin were down 0.88pc at €5.60 in afternoon trading on the Irish Stock Exchange yesterday.