End-July 2015, the group said it would take over Redoxim for EUR35 million, and Comfert (based in Bacau county) for EUR19.4 million. The two Romanian distributors of fertilizers, phytosanitary products and seeds had cumulated revenues of RON685 million (EUR155 million) in 2014. The acquisition of Comfert is expected to be completed in October.
Redoxim, headquartered in Timisoara and founded in 1991, is a leading provider of agronomy services, macro and micro inputs to arable, vegetable and horticulture growers. Redoxim, which employs over 190 people, services approximately 2,000 customers through an established distribution network of 55 retail outlets and a team of 50 agronomists and product specialists.
Origin said in July that it will acquire a 100% interest in Redoxim for a total cash consideration of EUR35 million of which EUR31.5 million will be payable upon completion with EUR3.5 million payable on the first anniversary of completion.
Last year, Redoxim’s revenue and operating profit before non-recurring items were RON238.3 million (EUR53.6 million) and RON24.7 million (EUR5.6million), respectively.
Comfert, headquartered in Bacau and founded in 1998, is a leading provider of agronomy services, integrated inputs and crop marketing support to arable and vegetable growers.
Origin will acquire 100% of Comfert based upon an enterprise value of EUR19.4 million. Additional deferred consideration will be payable based upon the achievement of specific annual profit targets over a five year period following completion. The transaction is subject to a number of conditions including clearance from the Romanian Competition Council and is expected to complete during October 2015.
Last year, Comfert’s revenue and operating profit before non-recurring items were RON447.2 million (EUR100.6 million) and RON14.4 million (EUR3.2 million), respectively.
Origin operates in Great Britain, Poland and Ukraine. Its main shareholders are Swiss company Arytza, with a 29% stake and Canadian investment company Mawer Investment Management, with a 14% stake.