Origin to spin off animal-feed unit
Irish Agri-Foods business Origin Enterprises said that it has reached agreement with W&R Barnett Ltd to establish an all-Ireland grain and feed handling, logistics and trading business.
The company will combine its Republic and Northern Ireland animal-feed ingredient import business into one operation across the entire island.
The all-Ireland business
will be formed through the integration of Origin’s R&H Hall business in the Republic of Ireland and the business of Origin and W&R Barnett (the largest grain trader in the North) in Northern Ireland.
Barnett will acquire a 50% interest in Hall. Both companies share silos in the North but have separate customer bases. In effect, Origin will dispose of half its interest in the Hall's feed-import activity.
Barnett is expected to pay consideration of some €26m as part of the deal, with Origin using the proceeds to "repay debt and ultimately to fund development of the group".
Barnett's Michael McAree will be managing director of the combined business. Last year, Hall recorded an operating profit of €5.1m on revenue of €301m.
Origin CEO Tom O'Mahony said “the creation of an all-Ireland platform significantly enhances the competitiveness and market positioning of our service offering and provides improved strategic support to our customers in the management of price risk and volatility."
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