LONDON (ShareCast) - AIM-listed Origin Enterprises on Wednesday announced that it has reached a conditional agreement to acquire a controlling interest in the business of Agroscope, a Ukraine firm which provides services to arable and root crop growers.

Under the deal, Origin will acquire an initial 60% stake on a cash-free, debt-free basis for $17.56m, which will be funded by existing bank facilities.

The transaction, which is expected to be immediately earnings-enhancing, is subject to a number of conditions including clearance from the Antimonopoly Committee of Ukraine and is expected to complete during the first quarter of the 2014 calendar year.

Agroscope's forecast revenues and earnings before interest and tax for 2013 are $107.51m and $7.19m, respectively.

Origin has an option to acquire full control of the business based on an agreed formula linked to future profitability.

The firm's Chief Executive Officer, Tom O'Mahony, said: "Agroscope is an excellent strategic fit for Origin adding complementary expertise and strong brand reputation on-farm with a dedicated commitment to excellence in customer fulfilment.

"The acquisition underlines Origin's strategic priority to scale its technology and service portfolios in new markets which provide meaningful agronomic application opportunity."

NR

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