Origin Enterprises plc.’s acquisition of fertilizer activities and certain assets of Bunn Fertilizer Ltd.


Origin Enterprises plc has signed an agreement to acquire the fertilizer activities and certain assets of Bunn Fertilizer Ltd.

Bunn is a leading provider of prescription fertilizer blends and nutrition management systems servicing the arable, grassland and horticultural sectors. Bunn markets an extensive range of technically based nutrition applications and has an established business-to-business and retail customer franchise. The transaction extends Origin’s existing fertilizer blending activities, as well as its customer service capabilities.

Under the terms of the Transaction, Origin will acquire the Business, on a debt free and cash free basis, for a consideration of £14.2 million payable in cash on completion. The total enterprise value of the Transaction, inclusive of estimated average working capital is expected to be £18.2 million, approximately. Bunn’s turnover for the year ended 31 December 2016 was £127.7 million and maintainable earnings before interest and tax (EBIT) is circa £2.8 million.

Completion of the transaction is subject to a number of conditions.

The acquisition is being funded from existing bank facilities and is expected to be earnings enhancing in the first full year of ownership.

Jones Day advised Bunn Fertilizer Ltd. in the sale of its the fertilizer activities and certain assets with a team led by Liam Bonamy (picture) and Julian Runnicles.

Involved fees earner: Liam Bonamy – Jones Day; Julian Runnicles – Jones Day;

Law Firms: Jones Day;

Clients: Bunn Fertilizer Ltd.;