UPDATE 1-Origin-CapVest venture to buy baked beans maker

* Origin Enterprises, Capvest set up Valeo Foods

* Valeo to buy Origin’s food brands, beans maker Batchelors

* Origin to receive 26 million euros cash

* Origin shares up 5.6 percent

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DUBLIN, Sept 10 (BestGrowthStock) – Irish food and agri-business
group Origin Enterprises (OGN.I: ) has teamed up with
British-based private equity firm CapVest to buy baked beans
maker Batchelors and hive off Origin’s own food brands.

Origin, 71 percent owned by Zurich-based baker Aryzta
(ARYN.I: ) (ARYN.S: ), will own 45 percent of the new company Valeo
Foods Group Ltd and CapVest will hold the remaining 55 percent.

Valeo has conditionally agreed to buy the branded food
businesses of Origin and another food maker Batchelors which is
known for its baked beans, peas and pulses.

Origin, which said the move would allow it to focus on
agriculture, will receive 26 million euros ($33 million) cash
for its food unit and a deferred consideration of 35 million as
a vendor loan note.

“The cash proceeds will initially be used to repay debt and
ultimately to fund development of the group’s agri-services
business,” Origin said, adding the transaction would be
marginally earnings-dilutive in 2011.

Origin’s shares were up 5.6 percent to 2.65 euros by 1010
GMT, making it the second biggest gainer in a broadly flat Irish
market (.ISEQ: ).
(Reporting by Andras Gergely; Editing by Dan Lalor)
($1 = 0.7882 euro)

UPDATE 1-Origin-CapVest venture to buy baked beans maker