Wynnstay Group PLC Acquisition of Tamar Milling Limited (6794G)

TIDMWYN

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 GBP1.4m, with a deferred consideration of up to GBP0.1m 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 GBP6.40m, and a profit before tax of GBP0.42m. Net assets at 30 September 2021 were GBP0.92m.

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 GBP1.4m paid on completion is subject to a net asset adjustment to be calculated based on completion accounts. The deferred consideration of up to GBP0.1m 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     T: 01691 827 
                         Executive                118 
                         Paul Roberts, Finance 
                         Director 
 
 KTZ Communications     Katie Tzouliadis / Dan   T: 020 3178 
                         Mahoney                  6378 
 Shore Capital (Nomad   Stephane Auton / John    T: 020 7408 
  and Broker)            More                     4090 
 

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November 17, 2022 02:00 ET (07:00 GMT)