Acquisition makes Irish firm leading farm consultancy services provider to Britain
Origin Enterprises plc, one of the offshoots from the original IAWS co-op, has completed the acquisition of Masstock Group Holdings Limited.
The initial consideration for the equity share capital of Masstock is £26.3 million — €35.1m. A deferred consideration of up to £10m (€13.3m) will be payable based on the achievement of profit targets to July 2012.
Masstock generated turnover of £250.6m for the year ending June 30, 2007, and operating profit before non-recurring items and goodwill amortisation was £6.8m. Masstock had net tangible assets of £23.6m and net debt of £30.6m.
Tom O’Mahony, Chief Executive of Origin, said: “Masstock provides integrated agronomy services to over 10,000 farm businesses throughout the United Kingdom and Poland.
“The acquisition significantly enhances Origin’s capability to support primary food production and precision-based farming practice and economics to deliver long-term sustainable farming solutions.”
“Masstock has the proven ability to respond to the changing context for primary food production, which, combined with the geographical spread of its business, presents a new exciting growth opportunity for Origin.”
Key management will stay with the Masstock business, which includes the Dalgety seed and fertiliser business.
Also, Origin has announced exploratory discussions with Norwegian-based Austevoll Seafood on combining their respective fishmeal and fish oil operations in Europe.
* Masstock Group Holdings Limited also has Irish roots; launched in the 1970s by Co Antrim brothers Alastair and Paddy McGuckian, it was involved in establishing some of the world’s largest dairy herds in the Middle East and becoming the leading supplier of fresh dairy products in the Middle East, and subsequently undertaking a diverse range of agri-projects on all five continents.
