Origin Enterprises to buy fertiliser company for £18.2m

Ireland-based agri-services group Origin Enterprises is to buy Bunn Fertiliser for up to £18.2m, in order to expand its fertiliser capacity.

The acquisition, which is subject to clearance from the Competition and Markets Authority in the UK, would extend Origin's existing fertiliser blending activities, as well as its customer service capabilities, and enable it to optimise operation and logistic efficiencies.

As part of the deal, Origin will buy Bunn, on a debt and cash free basis, for £14.2m in cash on completion with the total transaction coming to about £18.2m.

Bunn's turnover for 2016 was £127.7m and maintainable earnings before interest and tax was about £2.8m.

Origin chief executive Tom O'Mahony said: "Bunn is an excellent business with a dedicated commitment to addressing the crop yield, quality and soil fertility requirements of primary producers. Bunn advances the group's capacity to manage supply chain complexity as well as providing complementary customer and product channel access.”