Origin Enterprises announced plans this week to enter the Brazilian market.
ADVERTISEMENT
Agri services firm Origin Enterprises was the standout performer of the listed Irish agribusiness this week, as shares in the company soared by almost 7% in the last week to reach a six-month high of €6.30.
Shares in Origin rallied after the company announced its first move into South America, following the acquisition of a 65% stake in Brazilian company Fortgreen Commercial Agricol for €41.3m on a cash-free and debt-free basis.
Fortgreen has sales of €28.4m for its 2017 financial year, while earnings (EBITDA) stood at €9.3m. This gives the business a very strong earnings margin of 33%.
ADVERTISEMENT
With the business valued at just over €60m, Origin has paid a multiple of almost seven times the earnings for its stake in Fortgreen. As part of the deal, Origin has also agreed to acquire a 20% stake in the agronomy service group Ferrari Zagatto for an undisclosed sum. Fortgreen and Ferrari have common shareholders.
Of the other listed agribusiness firms, there were gains for shares in Aryzta (+4%) and Greencore (+3%) this week. Shares in UK retailer Tesco also jumped 4% after the supermarket giant posted its strongest quarterly sales growth in seven years.
The other standout from the last week is a further weakening in oil markets. The price of Brent crude oil, the global benchmark, fell 4% this week to just over $73/barrel.
This content is available to digital subscribers and loyalty code users only. Sign in to your account, use the code or subscribe to get unlimited access.
The reader loyalty code gives you full access to the site from when you enter it until the following Wednesday at 9pm. Find your unique code on the back page of Irish Country Living every week.
CODE ACCEPTED
You have full access to the site until next Wednesday at 9pm.
CODE NOT VALID
Please try again or contact support.
Agri services firm Origin Enterprises was the standout performer of the listed Irish agribusiness this week, as shares in the company soared by almost 7% in the last week to reach a six-month high of €6.30.
Shares in Origin rallied after the company announced its first move into South America, following the acquisition of a 65% stake in Brazilian company Fortgreen Commercial Agricol for €41.3m on a cash-free and debt-free basis.
Fortgreen has sales of €28.4m for its 2017 financial year, while earnings (EBITDA) stood at €9.3m. This gives the business a very strong earnings margin of 33%.
With the business valued at just over €60m, Origin has paid a multiple of almost seven times the earnings for its stake in Fortgreen. As part of the deal, Origin has also agreed to acquire a 20% stake in the agronomy service group Ferrari Zagatto for an undisclosed sum. Fortgreen and Ferrari have common shareholders.
Of the other listed agribusiness firms, there were gains for shares in Aryzta (+4%) and Greencore (+3%) this week. Shares in UK retailer Tesco also jumped 4% after the supermarket giant posted its strongest quarterly sales growth in seven years.
The other standout from the last week is a further weakening in oil markets. The price of Brent crude oil, the global benchmark, fell 4% this week to just over $73/barrel.
If you would like to speak to a member of our team, please call us on 01-4199525.
Link sent to your email address
We have sent an email to your address. Please click on the link in this email to reset your password. If you can't find it in your inbox, please check your spam folder. If you can't find the email, please call us on 01-4199525.
ENTER YOUR LOYALTY CODE:
The reader loyalty code gives you full access to the site from when you enter it until the following Wednesday at 9pm. Find your unique code on the back page of Irish Country Living every week.
SHARING OPTIONS