Origin Enterprises, the Irish listed agri-services group, is to acquire a controlling interest in the Ukraine based Agroscope . The move will give Origin an "important geographic extension opportunity".
Origin will take an initial 60 per cent stake in the company for $17.6 million (€ 12.7 million) based upon an enterprise value for Agroscope of $29.7 million (€ 21.2 million). It has an option to acquire full control of the business, based on future profitability, and is funding the initial stake from bank facilities.
Based in Ukraine and founded in 2002, Agroscope, employs 150 people and is a provider of agronomy services, high specification inputs, and advisory support to arable and root crop growers. The existing management team, led by Iryna Ivanova, Agroscope founder and chief executive, will remain with the business. Agroscope is forecast to report revenues of $107.51 million and earnings before interest and tax of $7.19 million, for year-end December 2013.
Tom O’Mahony, Origin chief executive officer, said that Agroscope is an “excellent strategic fit” for Origin.
“The acquisition underlines Origin’s strategic priority to scale its technology and service portfolios in new markets which provide meaningful agronomic application opportunity,” he said.
The transaction is expected to complete during the first quarter of the 2014 calendar year.
