Dublin-based agribusiness group Origin Enterprises has paid £26.3 million (€35.3 million) for Masstock, a UK agricultural firm started in the 1970s by two Northern Ireland entrepreneurs.

Another £10 million is payable on achievement of profit targets over the next 4½ years. Origin has also taken on board Masstock debt of £30.6 million

Since its creation by brothers Paddy and Alistair McGuckian, Masstock has become one of the leading agribusiness players.

It employs 550 people in the UK and Poland and last year generated turnover of £250.6 million and operating profits of £6.8 million.

The firm helps growers to increase crop yields through hands-on advice and products such as seed and fertiliser.

Origin, which was part of the IAWS group until two years ago, says the purchase makes sense because of rising global demand for food and biofuels.

The acquisition purchase will increase Origin's size by about one third. Last year, Origin had revenue of €889 million and profit of €38.1 million.

Masstock's management team will remain in place, said Origin.

NCB analyst Paul Meade estimated that the deal would add about two cents to each Origin share. "This is an important acquisition for Origin, representing a new area of growth from a broadening business platform," he said.

Separately, Origin has also announced that it is in exploratory discussions with Norwegian-based Austevoll Seafood on the potential of combining their respective fishmeal and fish oil operations in Europe.

Austevoll, which operates in Norway, Peru and Chile, also processes fish for human consumption and operates salmon farms.

Fishmeal and fish oil are supplied to fish farms as energy-boosting feed.