Acquisition of Petstore Chain

Wynnstay Group PLC
14 January 2008


WYN.L

                               Wynnstay Group plc

                          ('Wynnstay' or 'the Group')

                      Acquisition of Pet Superstores Chain


Wynnstay, the retail and agricultural supplies business, is pleased to announce
the acquisition today of Wilsons Pet Centres Limited ('Wilsons Pet Centres'),
the Midlands based chain of pet superstores, for a gross cash consideration of
up to £5.85m. After taking into account the utilisation of surplus cash in the
acquired business, amounting to approximately £0.69m, the net consideration is
up to £5.16m. The acquisition wholly complements Wynnstay's existing pet
supplies and retailing activities, adding critical mass and giving Wynnstay a
strong market position in the West Midlands region. Wynnstay expects the
addition of Wilsons Pet Centres to be immediately earnings enhancing.

Based in Bromsgrove in the West Midlands, Wilsons Pet Centres was established in
1993. Since then, the management has built up a chain of 10 pet superstores,
with locations in the south west Midlands in Evesham, Malvern, Worcester,
Droitwich, Kidderminster, Northfield, Acocks Green, Stourbridge, Swadlincote and
Bromsgrove. The stores, which are all leasehold, are modern and spacious, with
an average floor space of 6,000 sq ft, and are typically located within retail
parks. Each store offers a comprehensive range of pet care products as well as
related services such as in-store pet grooming, pet behaviour courses and pet
insurance. Wilsons Pet Centres has 104 employees on a full time equivalent
basis.

For the year ended 28 October 2007, Wilsons Pet Centres generated revenues of
£6.8m and pre-tax profits of £669,609. At completion, adjusted net assets stood
at £1.0m (excluding surplus cash of approximately £0.69m).

Following the completion of the acquisition, the two principal directors of
Wilsons Pet Centres, who together have 42 years' experience of pet supplies
retailing, will remain with the business and will lead the on-going development
of Wynnstay's pet products retailing activities.

Wynnstay has a successful track record of integrating retail acquisitions and
the Group believes that there is excellent potential for expanding its
pet-related activities through both dedicated pet and general stores. Wilsons
Pet Centres will be rebranded under Wynnstay's existing pet brand, 'Just for
Pets', and as part of the Wynnstay group, it is expected that it will benefit
from opportunities to enhance purchasing, marketing and its product offering.

Of the total net acquisition consideration of up to £5.16m, £4.3m is payable in
cash on completion, with the balance payable in cash in January 2009, depending
on the achievement of certain financial targets during the first year. The
initial payment will be satisfied from Wynnstay's existing cash resources and a
new five year loan facility of £3.0m from HSBC plc carrying an interest rate of
1% over base rate.

Bernard Harris, managing director of Wynnstay, commented,

'We have been extending Wynnstay's existing retailing activities into the high
growth area of pet care products for some time now and, following the launch in
the Summer of our own dedicated pet store format, Just for Pets, the acquisition
of Wilsons Pet Centres is the next logical step.

Wilsons Pet Centres is a long-established, well-run chain in the West Midlands,
with a reputation for efficient and friendly customer service. Combining the
business with our own is compelling and brings significant benefits, both from
the point of view of cost efficiencies and ongoing growth strategies.

I am very pleased too that the senior management team at Wilsons Pet Centres
will remain with the enlarged business, leading its development, and believe
that there are exciting growth opportunities ahead of us.'


Press enquiries:

Wynnstay Group plc      Bernard Harris, Managing Director       T: 01691 828512
                        Paul Roberts, Finance Director

Biddicks                Katie Tzouliadis                        T: 020 7448 1000

WH Ireland Limited      David Youngman                          T: 0161 832 2174








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