20 June 2011

Origin Enterprises today announced that it has reached agreement to acquire CM Fertilisers for £19million.

The group said the acquisition will further the development of its core position in the provision of sustainable agricultural technologies and integrated on-farm advisory services that support the primary sectors of the food industry.

CM Fertilisers Limited, based in Scotland and the North of England, is a leading provider of branded specialist fertilisers together with integrated nutrient management systems servicing the arable, grassland, horticulture and forestry sectors. The Company, which services a complementary geographic footprint, markets an extensive range of technically based nutrition applications that strongly support Origin’s existing position in the United Kingdom.

The acquisition is a complete buyout of CM Fertilisers, the fertiliser arm of Carrs Milling Industries PLC, for £19 million plus the working capital related debt at completion, estimated at £5.9 million. CM Fertilisers’ Turnover for the year ended 28 August 2010 was £59.3 million and EBIT amounted to £1.9 million.

A General Meeting of Carrs Milling shareholders to approve the transaction will be held on 13 July 2011. Commenting on the announcement Tom O’Mahony, CEO of Origin said,“We are delighted with the acquisition of CM Fertilisers, a highly focused business dedicated to optimising primary producers’ crop yield and quality in an environmentally compliant manner.

This acquisition builds upon Origin's commitment to create customised value propositions that meet farmers’ needs through new service applications providing for the maintenance of soil fertility and the sustainable improvement to plant nutrition along with an enhanced procurement capability facilitating strategic opportunity to reduce the impact of input price volatility.”