Origin Enterprises to acquire Kazgod Group for €22.4m

Business | Tue 18 Aug | Author – Business & Finance
Agri food

Origin Enterprises, the agri-services Group, today announced that it is to acquire Polish-based Kazgod Group.

According to Origin Enterprises, Kazgod significantly augments its existing operations in Poland which are currently servicing approximately 3,500 largely arable farmers under the Dalgety brand.

Origin Enterprises is a leading provider of value added services, technologies and strategic inputs that support the delivery of sustainable and profitable food production solutions for primary producers. Listed on the ESM and AIM markets of the Irish and London Stock Exchanges respectively, Origin is headquartered in Dublin, Ireland.

Kazgod is a leading provider of agronomy services, inputs, crop marketing solutions as well as a manufacturer of micro nutrition applications. The business, which employs over 200 people, services some 2,600 customers across an established direct farm and retail distribution network throughout central and eastern Poland.

Under the terms of the deal Origin will acquire 100% Kazgod based on an enterprise value of €22.4m. Approximately €20.3m of the total consideration will be satisfied on completion with €2.1m deferred and payable three years following completion.

Commenting on the announcement, Origin CEO Tom O’Mahony said:“Kazgod, through providing transformative and meaningful scale expansion potential in Eastern Europe furthers Origin’s strategic development objectives and positions the Group as the premier service provider to primary arable producers in Poland.

“The combination of Kazgod and Dalgety will bring benefits through new customer extension opportunity and an enhanced capacity for the development of new and innovative service propositions. Kazgod is a highly focused business with a dedicated commitment to customer service and quality.”

Kazimierz Kuzminski, founder and president of the Kazgod Group said: “I am pleased to have reached agreement with Origin. Kazgod together with Dalgety will enhance Origin’s competitive position in the Polish agri-services market.

“We now have a like-minded partner with a depth of technical resource and knowledge transfer capability that can transform the breadth and scope of service support to our customers.”