Origin bids €20m for Moyglare

ORIGIN, the IAWS agribusiness and property subsidiary, planning an initial public offering (IPO) next month, has bid for warehousing group Moyglare Holdings.

The amount involved is understood to be €20 million, but that figure could not be confirmed.

Moyglare has land and facilities in Dublin and Cork.

Consultants Grant Thornton are conducting the sale.

If Origin succeeds, the acquisition would bring it a number of results.

Its provender milling business, R&H Hall, is located in the Cork docklands, which is in line for major redevelopment in the coming years.

The Ringaskiddy site would provide an alternative for the Hall provender milling operations and allow it to sell on the city centre landbank or become involved in a joint venture property development.

The site of over 30 acres should net the group €300m, which could be used to drive the core businesses forward.

Origin was formed out of IAWS Plc to put a fresh focus on the agribusiness and the ambient foods division operated under Shamrock Foods.

Moyglare would also be the first acquisition by the new group since 1998, when IAWS turned its focus on the lifestyle end of the food business.

The €100m raised through the flotation will be used to expand the group’s interests across its fertiliser, animal feeds and the Shamrock Foods ambient food range that includes the Roma brand.

Roma, as well as the other Shamrock brands, constitutes a significant part of the overall group, accounting last year for about €235m-€240m of the €817m turnover generated by the group.

Origin also has a 50% equity stake in Odlums and produces marine proteins.

Its activities span the British and Irish markets and the group has a series of fertiliser plants strategically located in Britain that it acquired up to 1998.

Announcing the IPO recently Tom O’Mahony, chief executive, said the money will be used to facilitate acquisitors across the main activities of Origin.

Acquisition targets in Ireland and Britain are on the group’s hit list and Moyglare looks like it could become the first to be takeover under the new regime.

News of the bid for Moyglare suggests the newly formed group intends to move quickly to build up the group’s animal feeds, fertiliser division and Shamrock Foods operations.

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