Origin group buys Masstock for €81m

ORIGIN Enterprises, in which IAWS holds a 71.4% stake, has bought Masstock Group for a total of £61 million (€81.78m) which includes £30m (€40m) of debt.

Masstock has operations in Britain and Poland and provides specialist agronomy services directly to arable and grassland farm enterprises.

It services more than 8,000 farmers in Britain and 2,300 in Poland and employs 550 people in delivering that process to its customer base.

Since the early 1970s Masstock was involved in development farming systems throughout the world.

It was the brainchild of two Northern Ireland brothers, Paddy and Alistair McGuckian.

Origin said it will fund the deal through borrowings and that theacquisition will be earnings enhancing from the start.

It has emerged also that the existing management team, led by group chief executive Declan Giblin are to stay on with the group.

“Masstock provides system-based solutions directly to more than 10,000 farm businesses throughout Britain and Poland,” said Origin chief executive Tom O’Mahony.

This business combines an extensive arable research and development capability with add on sales, said Mr O’Mahony.

Origin is a big player in animal feeds and fertilisers and expects to build those sales as a direct result of the takeover.

Leading food analyst John O’Reilly, of Davy Stockbrokers, said: “In addition to Masstock’sautonomous growth prospects, there is also potential to add other farm-related services to its existing capability.”

He also said the deal, expected to be completed in early February, could add about 7% to his EPS growth forecast of 21.7% for the year.

Mr Giblin described the move “as an important milestone in the development of Masstock”.

As a result, he said the company would become a core part of a group that is focused on delivering value added to primary sectors of the food industry.