Agri-services group Origin Enterprises has reached a conditional deal to buy an initial 60% stake in a company called Agroscope for €12.7m.
Based in Ukraine and founded in 2002, Agroscope provides agronomy services, high specification inputs, and advisory support to arable and root crop growers.
It has a workforce of 150 people and services over 1,200 customers.
The deal is still subject to a number of conditions including clearance from the Antimonopoly Committee of Ukraine. It is expected to be completed during the first quarter of next year.
Origin said that Agroscope's existing management team led by Iryna Ivanova, Agroscope founder and chief executive, will stay on at the company. Its forecast revenues and earnings before interest and tax for the year ended 31 December 2013 are €77.90m and €5.21m respectively.
Origin also has an option to acquire full control of the company based on future profitability. It said the purchase is being funded from existing bank facilities.
"Agroscope is an excellent strategic fit for Origin adding complementary expertise and strong brand reputation on-farm with a dedicated commitment to excellence in customer fulfilment. The acquisition underlines Origin's strategic priority to scale its technology and service portfolios in new markets which provide meaningful agronomic application opportunity," commented Origin's chief executive Tom O'Mahony.