Origin Enterprises in €87m Valeo Foods exit

Agri-services group Origin Enterprises has stepped up its non-core asset disposal programme by selling its 32% stake in leading consumer foods group, Valeo Foods, for a cash consideration of nearly €87m.

Valeo — which owns a number of well-known Irish brands such as Odlums, Chef, Shamrock, Roma, Robert Roberts and Kelkin — was established in 2010, via the merger of Origin’s consumer foods arm and Batchelors, which was owned by Irish-founded/London-based private equity house, CapVest Partners.

Origin has now sold its holding to CapVest for €86.6m. That consideration comprises €42.5m for Origin’s equity stake, plus €44.1m (including interest) on a vendor loan note that had been provided by Origin.

The carrying value of Origin’s investment in Valeo, as of the end of last January, amounted to €67m inclusive of a cash equity amount of €22m. The proceeds from the sale will go towards debt reduction and for investment in the main agri-services division of the group.

“The transaction furthers the group’s capital reallocation objectives, while tightening Origin’s strategic focus as we prioritise the further development of agri-services,” said CEO, Tom O’Mahony.

Origin also announced, yesterday, the extension of its agri-services business in Romania, via the acquisition of two companies.

There, the Dublin firm has bought Timisoara-based agronomy services provider, Redoxim for a cash consideration of €35m. Origin has also bought Comfert — a Bacau-based crop marketing and agronomy services firm — for €19.4m.

“Redoxim and Comfert represent an excellent strategic fit for Origin providing complementary expertise, meaningful geographic extension and strong brand reputation on-farm.

“The transactions underline Origin’s strategic priority to scale its technology and service portfolios in new markets with favourable agronomic application opportunity,” Mr O’Mahony said.