Origin acquires two UK firms

ORIGIN ENTERPRISES, which today reported group revenues of €613.3 million for the six-month period ended January 31st, 2011, has acquired United Agri Products (UAP) and service provider Rigby Taylor.

Origin said it was to acquire UAP for an enterprise value of £33 million (€38.5 million). A further £4 million will be paid in March 2013, the group said.

The UK-based firm, which is a provider of agronomy services to arable, fruit and vegetable growers, reported turnover for the year ending August 1st, 2010 of £111.3 million and operating profit of £5.9 million.

Origin is also to acquire Rigby Taylor, a UK firm which supplies products to the sports turf, landscape and amenity sectors, for an initial consideration of £9.2 million (€10.7 million). Deferred consideration of up to £1 million will be paid based upon the achievement of specific profit targets, the company said.

Rigby Taylor turnover for the year ended November 30th last was £22.7 million and the operating profit was £1.52 million.

The acquisitions are being funded from existing bank facilities and Origin said they are expected to be earnings enhancing from the date of acquisition.

“The acquisitions represent an excellent strategic fit for the group and reinforce Origin’s commitment to building scale, systems and processes around the key elements that support profitable and sustainable farming systems in addition to facilitating access to new market opportunities,” said Origin chief executive Tom O’Mahony.

Origin also announced first-half results for the six-month period ending January 31st, 2011.

It said group revenues rose 3 per cent to €613.3 million from €596.7 million. Operating profit rose 14 per cent from €21 million to €24 million.

Its agri-services division recorded a 61 per cent rise in operating profits to €12.6million. However, operating profits at the food division fell 38 per cent to €5.5 million over the same period.

Earnings per share were 11.45 cent, up from 8.68 cent. The shares closed up 4.44 per cent at €4. There was no interim dividend.