REG - Wynnstay Group PLC - Acquisition of Tamar Milling Limited

WynnstayAnnouncement

17/11/2022 07:01

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RNS Number : 6794G  Wynnstay Group PLC  17 November 2022

17 November 2022

AIM: WYN

WYNNSTAY GROUP PLC

("Wynnstay" or "the Group" or "the Company")

 

Acquisition of Feed Manufacturer and Supplier, Tamar Milling Limited

 

Expansion of the Group's presence in the south-west of England

 

Wynnstay, the agricultural supplies group, is pleased to announce that it has
acquired the entire share capital of Tamar Milling Limited ("Tamar"), a
manufacturer and supplier of blended feed products, for an initial
consideration of £1.4m, with a deferred consideration of up to £0.1m payable
dependent on performance. The acquisition is expected to be immediately
earnings enhancing.

 

Established in 1994, Tamar is based in Whitstone, Cornwall, and manufactures
and supplies a range of blended and coarse mix feed rations for dairy cows,
cattle, and sheep to approximately 250 farmers, mainly in the south-west of
England. Approximately 25,000 tonnes of feed is supplied annually. Tamar also
operates a successful 'on-farm' grain milling service for farmers wanting to
use home-grown or purchased grain in their livestock rations. Following its
acquisition, Tamar's founder, Nick Furse, will join Wynnstay in a senior
commercial feed role and continue to lead Tamar's operations.

 

In the year ended 30 September 2021, Tamar generated revenues of £6.40m, and
a profit before tax of £0.42m.  Net assets at 30 September 2021 were
£0.92m.

 

The acquisition of Tamar is in line with the Group's strategy of acquiring
businesses that complement its existing activities and bring further benefits.
Tamar significantly strengthens the Company's presence in the south-west of
England, adds a new farming customer base, additional supply chain
relationships and significant cross-selling opportunities. It also establishes
Wynnstay with its first feed manufacturing facility in the region, enabling it
to provide its own bulk feed offering in the area.

 

The initial consideration of £1.4m paid on completion is subject to a net
asset adjustment to be calculated based on completion accounts. The deferred
consideration of up to £0.1m is payable dependent on product volumes
transacted in the first twelve months following completion. The Group is
funding the acquisition from its existing resources.

 

The acquisition of Tamar is the potential acquisition referred to in the
Company's announcement of 17 August. The second larger potential acquisition
referred to in the same announcement is no longer under consideration as
commercially acceptable terms were not reached. The Company continues to
review a number of acquisition opportunities that meet its strategic
priorities.

 

Gareth Davies, Chief Executive Officer of Wynnstay Group plc, commented:

 

"Tamar is a long-established, high-quality manufacturer and supplier of
blended animal feed and 'on-farm' grain milling services to farmers in the
south-west of England. Like Wynnstay, it places a strong emphasis on customer
service, and has a significant customer base.

 

"Tamar is highly complementary and will be immediately earnings enhancing. It
fulfills multiple acquisition criteria. It increases our presence in the
south-west, adds new farmer customers and provides us with our first feed
manufacturing facility in the area. We look forward to working with our new
colleagues and to continuing Tamar's successful growth."

 

Enquiries:

 Wynnstay Group plc                Gareth Davies, Chief Executive   T: 01691 827 118

                                   Paul Roberts, Finance Director

 KTZ Communications                Katie Tzouliadis / Dan Mahoney   T: 020 3178 6378
 Shore Capital (Nomad and Broker)  Stephane Auton / John More       T: 020 7408 4090

 

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