Origin Enterprises, an Irish food and agribusiness group decided to make its geographic extension of agri-services in Romania, acquiring two local companies – Redoxim and Comfert – for a combined EUR 54.4 million, farmersjournal.ie informs.
Origin Enterprises chief executive Tom O’Mahony described the acquisitions as an “excellent strategic fit” for the group. “The transactions underline Origin’s strategic priority to scale its technology and service portfolios in new markets with favourable agronomic application opportunity,” O’Mahony added.
Redoxim, headquartered in Timisoara in western Romania, is described as a leading provider of agronomy services, macro and micro inputs to arable, vegetable and horticulture growers that was founded in 1991.
Origin will acquire 100 percent of the business for a cash payment of EUR 35 million with the deal expected to be completed this autumn. Upon completion of the deal, EUR 31.5 million will be paid up front with a further EUR 3.5 million payable a year from then.
For the 2014 financial year, Redoxim recorded sales of EUR 53.6 million with an operating profit of EUR 5.6 million.
Comfert, the second business that the Irish group is to acquire, is based on the opposite side of Romania in the eastern city of Bacau. Origin Enterprises will pay an initial fee of EUR 19.4 million for the business, however additional fees may be payable based on the future performance of the business over the next five years.
“This transaction offers excellent prospects to Comfert’s customers, suppliers, employees and represents an important strategic move for the company,” Catalin Grigoriu, the company’s owner said for local desteptarea.ro.
In 2014, Catalin Grigoriu ranked 130th in Capital’s Top 300 “richest Romanians” and at 38 yo could boast that having an integrated business in milling and bakery industry. Besides Comfert, young businessman from Bacau owns along with Eusebius Gutu Pambac company.
The deal will be subject to clearance from the Romanian Competition Council but is expected to be completed this September. Founded in 1998 and leading input and agronomy services provider for 1900 largely intensive growers, Comfert recorded sales of EUR 100.6 million for its 2014 financial year making an operating profit of EUR 3.2 million.