Origin Enterprises plc has announced that it has reached agreement to acquire the fertiliser activities and certain assets of Bunn Fertiliser Ltd.
Based in the UK, Bunn is a provider of prescription fertiliser blends and nutrition management systems servicing the arable, grassland and horticultural sectors.
Bunn, which enjoys a brand heritage of over 200 years, markets an extensive range of technically based nutrition applications and has an established business-to-business and retail customer franchise.
Bunn extends Origin’s existing fertiliser 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.
Commenting on the announcement, Origin Chief Executive Officer 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.”
