Acquisition of Banbury Farm & General Supplies

RNS Number : 7716Q

Wynnstay Group PLC

09 November 2012

 

AIM: WYN

WYNNSTAY GROUP PLC

("Wynnstay" or "the Group")

Acquisition of Banbury Farm & General Supplies Ltd

The Board of Wynnstay, the agricultural and specialist retail group, is delighted to announce that it has acquired Banbury Farm & General Supplies Limited ("Banbury"), a hardware and agricultural inputs supplier, based in Burton Dassett outside Banbury in Oxfordshire, for a net consideration of up to £0.65m, after taking into account the utilisation of net cash in the acquired business. Of the net consideration, £0.45m is payable in cash on completion and a further consideration, up to a maximum of £0.2m, may also be payable, depending on Banbury's performance over the next two years. The acquisition extends the geographic spread of Wynnstay's agricultural and specialist retailing activities into the Oxfordshire area. 

Established over 14 years ago, Banbury provides a range of products to farmers but also caters for local rural consumers. Its range includes animal nutrition products, diary hygiene products, fencing, gates, horse and pet food, chicken arks, stable matting etc.  For the year ended 30 September 2011, Banbury generated revenues of £1.4m and operating profits of £0.19m. Net assets at completion (excluding net cash) are expected to amount to £0.15m.

Wynnstay intends to integrate Banbury into its Country Stores chain, part of Wynnstay's wider specialist retailing activities which also comprise 21 "Just for Pets" specialist pet stores.  Together with  recent acquisitions in Tetbury, Gloucestershire and Whitchurch, Shropshire, Banbury takes the total number of Country Stores outlets to 31.

Taking into account anticipated net cash acquired of £1.07m, the total gross cash consideration of up to £1.72m will be payable as to £1.37m in cash on completion, a balance of net assets payment made on calculation, expected to be £0.04m within 3 months, additional deferred debtors of £0.11m by August 2013 and the deferred consideration of up to £0.10m on each of the first and second anniversaries of the transaction.

The Directors expect to announce Wynnstay's full year results, for the year ended 31 October 2012, in January 2013.

Ken Greetham, Chief Executive of Wynnstay, said,

"We are very pleased to have acquired this successful agricultural merchant. The acquisition establishes a first physical presence for us in this important farming area, complementing the existing activities of our direct sales force. We look forward to working with the existing management team to expand the business they have successfully developed over a number of years by introducing our wider product range and expertise to their existing customer base."

Enquiries:

Wynnstay Group plc	Ken Greetham, Chief Executive	T: 01691 828512
	Paul Roberts, Finance Director
Biddicks	Katie Tzouliadis	T: 020 3178 6378
Shore Capital (Nomad & Broker)	Stephane Auton Patrick Castle	T: 020 7408 4090

 

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