30th Apr 2018 14:20
LONDON (Alliance News) - Agricultural supplies firm Wynnstay PLC said Monday it had agreed with administrators to acquire eight stores from Countrywide Farmers PLC for GBP800,000 in cash.
Wynnstay will buy the stores - located in Devon and Cornwall - in order to extend its geographical reach into south-west England. This follows another acquisition in Cornwall in March.
The acquisition will see the number of Wynnstay stores grow to 60 from 52.
For the year ended November, the eight store generated GBP16.4 million in revenue. Following completion, Wynnstay will implement an integratuion and investment programme. It expects to see a "positive contribution" from the firm from 2019 onwards.
For the year ended October, Wynnstay generated GBP7.7 million in pretax profit on revenue of GBP390.7 million.
"We are very pleased to have acquired eight country stores previously operated by Countrywide Famers," Wynnstay Chief Executive OfficerKen Greetham said. "Their addition increases our footprint in both our existing trading heartland, and in the South West of England, in particular giving us an increased profile in Cornwall and Devon."
"Farmers and the rural community are at the heart of Wynnstay's offering and we look forward to welcoming new customers to the group, as we introduce our products and services across these new stores," Greetham added.
Shares in Wynnstay were trading 1.6% higher at 474.90 pence on Monday.
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