Origin acquires UK fertiliser provider for £14.2m

Agri-services group Origin Enterprises said on Tuesday it is to acquire the fertiliser activities and certain assets of Bunn Fertiliser for £14.2 million (€16.4m), in a deal which will optimise the group's ability to manage supply chain complexity.

Bunn, a UK provider of prescription fertiliser blends and nutrition management systems servicing the arable, grassland and horticultural sectors, has an established business-to-business and retail customer franchise. Bunn’s turnover for the year ended December 31st 2016 was £127.7 million.

Origin chief executive Tom O’Mahony said the acquisition of Bunn “ advances the group’s capacity to manage supply chain complexity as well as providing complementary customer and product channel access”.

Origin will acquire Bunn, on a debt free and cash free basis, for £14.2 million payable in cash on completion, pending clearance from the Competition and Markets Authority in the UK. The acquisition is being funded from existing bank facilities and is expected to be “earnings enhancing” in the first full year of ownership.