19th Oct 2015 07:30
LONDON (Alliance News) - Agricultural supplies company Wynnstay Group PLC on Monday said it has struck a deal to acquire the West Country farm supplies unit of TG Jeary Ltd for an undisclosed amount and said trading for its nearly-concluded financial year has been in line with expectations.
The Agricentre business at Jeary operates eight units which supply a range of agricultural services, including animal healthcare, dairy hygiene and animal nutrition products. The business generates an average of around GBP15.0 million in sales a year, Wynnstay said.
The company said the deal will expand its trading presence into the West Country region of England, with the assets to be integrated into its existing stores network.
"Agricentre has been supplying farmers in the West Country with agricultural inputs for 54 years, and I am delighted to announce that we have agreed terms to acquire the business. It is a strategically important move for us as it extends Wynnstay into a new trading area. We look forward to working with the existing management team to further develop the business and bring new products and services to their customer base," said Wynnstay Chief Executive Ken Greetham.
Wynnstay also said trading in the second half of its financial year, to October 31, has been solid, with results set to be in line with market expectations. The trading backdrop for British farmers does look tough going forward, it said, and it is taking a cautious view on any recovery of output prices in the next financial year.
"UK farmers are currently facing challenges, with low farmgate prices particularly for milk. While the trading backdrop remains challenging, we remain positive about the long term opportunities driven by world food demand, and continue to focus on assisting farmers with the drive for enhanced efficiencies in production," Greetham added.
Shares in Wynnstay were untraded on Monday, having last traded at 526.50 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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