Carr’s sells fertiliser business for £19m
CARR’S Milling Industries, the Carlisle-based agricultural and engineering firm, has sold its Carrs Fertilisers division to Irish agribusiness Origin Enterprises for £19m.
The division is responsible for blending raw fertiliser materials into finished products from three sites – Silloth in Cumbria and from Invergordon and Montrose in Scotland. The product is then sold on to merchants, agents and directly to the farming community.
As part of the deal, Origin will also assume the £5.9m of net debt currently owed by Carrs Fertilisers.
Carr’s said the deal would strengthen the company’s balance sheet with the bulk of the proceeds being used as net cash and being placed on deposit, although £3m will be used to offset the company’s current pension fund deficit.
The firm’s chief executive officer, Chris Holmes, said the sale will remove a large exposure the company currently has to commodity price fluctuations, which should reduce the volatility of the company’s profits.
Meanwhile, a five-year distribution deal signed between Origin and its own merchant business, CBASL, will ensure continuity of supply to its own customer base.
“The strong balance sheet and low gearing leaves Carr’s in a strong position for further investing in existing parts of the business and to seek further acquisitions,” said Holmes.
