Origin Enterprises plc, Dublin, announced on July 1 the sale of its Belgian fertilizer business, Pillaert-Mekoson Inc., Ghent, to The Netherlands-based Brokking Group for total consideration of €15.5 million on a cash and debt free basis. Proceeds from sale are to be used for general corporate purposes
Origin CEO Sean Coyle said the company had looked to acquire complementary businesses to add further scale to fertilizer operations in the region. “Without suitable consolidation opportunities, we have therefore decided to exit this market to focus on markets which offer greater growth potential.”
Origin has only owned Pillaert-Mekoson for a few years, having bought it in 2018 (GM Jan. 26, 2018). At the time it did not report the acquisition price.
The Belgian unit provides standard and prescription fertilizers in Belgium and surrounding regions. It has a brand heritage of over 50 years, markets a large range of technically-based nutrition applications and operates a business-to-business and retail customer franchise. The turnover for Pillaert-Mekoson for the 2017 financial year was €35 million, and maintainable earnings before interest, tax, and depreciation/amortization (EBITDA) is circa €1.8 million.
Origin’s Agri-Services unit supplies crop technologies and inputs in Ireland, the U.K., Brazil, Poland, Romania, and Ukraine. Origin is listed on the ESM and AIM markets of the Irish and London Stock Exchanges. In 2017, it purchased assets of Bunn Fertiliser Ltd., Norwich, England, from Koch Fertilizer LLC, Wichita, Kan. (GM Aug. 18, 2017).