Agri-services group Origin Enterprises has agreed to acquire Poland-based Kazgod Group for €22.4 million.
Kazgod is a manufacturer of micro-nutrition applications, which track users’ intake of basic vitamin and minerals, and a provider of agronomy services and crop marketing solutions.
The company, which employs more than 200 people, services 2,600 customers throughout central and eastern Poland.
The deal, which needs approval from the Office for the Protection of Competition and Consumers in Poland, is expected to be complete before the end of 2015.
Approximately €20.3 million of the total consideration will be satisfied on completion, with €2.1 million deferred and payable three years following completion.
Origin chief executive Tom O’Mahony said Kazgod will significantly augment Origin’s existing operations in Poland which are currently servicing approximately 3,500 largely arable farmers under the Dalgety brand.
“The combination of Kazgod and Dalgety will bring benefits through new customer extension opportunity and an enhanced capacity for the development of new and innovative service propositions,” he said.
Origin Enterprises sold a 32 per cent stake in Valeo Foods, which owns the Kelkin, Batchelors and Odlums brands, last month for nearly €87 million to reduce its debt and focus primarily on fertiliser and animal feed products.
The Kazgod deal appears to be part of this policy.
Last month, it also announced the acquisition of two Romanian agri-business firms in deals worth a combined €54 million.
Origin is due to issue its full-year results on September 23rd.
Swiss based food group Aryzta raised more than €404 million from the sale of 49 million shares in in Origin earlier this year.
The relationship between Origin and Aryzta dates back to 2006, when the IAWS group established Origin to focus on its agri-services businesses.
The remaining part of IAWS merged with Heistand Holdings two years later to form Aryzta, which is listed in Dublin and Zurich.
