November 15, 2010
Ireland's Origin to spin off animal-feed unit
Irish agri-foods business, Origin Enterprises has come to a consensus with W&R Barnett Ltd to build an all-Ireland grain and feed handling, logistics and trading business.
The organisation will merge its Republic and Northern Ireland animal-feed ingredient import business into one operation across the whole island.
The all-Ireland business will be created by the integration of Origin's R&H Hall business in the Republic of Ireland and the business of Origin and W&R Barnett in Northern Ireland.
Barnett will have a 50% interest in Hall. Both organisations share silos in the North but have different client bases. In effect, Origin will dispose of 50% of its interest in the Hall's feed-import activity.
Barnett is expected to give consideration of some GBP26 million (approximately US$42 million) as a portion of the deal, with Origin using the money to repay debt and ultimately to fund development of the group.
Barnett's Michael McAree, will be the managing director of the combined business. Last year, Hall made an operating profit of GBP5.1 million (US$8.23 million) on revenue of GBP301 million (US$486 million).
Origin's chief executive officer, 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."