Origin Enterprises plc has reported that it has reached agreement to acquire the fertilizer activities and certain assets of Bunn Fertilizer Ltd.
Bunn is a leading provider of prescription fertilizer blends and nutrition management systems servicing the arable, grassland and horticultural sectors. Bunn markets an extensive range of technically based nutrition applications and has an established business-to-business and retail customer franchise. The transaction extends Origin’s existing fertilizer blending activities, as well as its customer service capabilities.
Under the terms of the Transaction, Origin will acquire the Business, on a debt free and cash free basis, for a consideration of £14.2 million payable in cash on completion. The total enterprise value of the Transaction, inclusive of estimated average working capital is expected to be £18.2 million, approximately. Bunn’s turnover for the year ended 31 December 2016 was £127.7 million and maintainable earnings before interest and tax (EBIT) is circa £2.8 million.
Completion of the transaction is subject to a number of conditions.
The acquisition is being funded from existing bank facilities and is expected to be earnings enhancing in the first full year of ownership.
Origin CEO, 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. We are looking forward to welcoming everyone associated with Bunn Fertiliser to Origin Enterprises.”
Read the article online at: https://www.worldfertilizer.com/nitrogen/08032017/origin-enterprises-to-acquire-bunn-fertiliser-ltd/