Wynnstay Group PLC
07 August 2006
Wynnstay Group plc
WYN.L
Wynnstay Group Plc
Acquisition of
Glasson Group (Lancaster) Limited
Wynnstay Group plc ('Wynnstay'), the agricultural and retail group, is pleased
to announce the acquisition of the entire issued share capital of Glasson Group
(Lancaster) Limited ('Glasson Group' ), for a total consideration of £2.5m,
satisfied by £2.0m in cash on completion and £0.5m in secured loan notes, dated
4 August 2008.
Established in 1977 and based at Glasson dock, near Lancaster, Glasson Group is
involved in the importation, shipping and trading of animal feed materials
together with fertiliser blending and the manufacture of pet and speciality
products. In the year ended 31 May 2005, Glasson Group generated sales of £36.3m
and operating profits of £261,000. For the year ended 31 May 2006, the Glasson
Group is expected to have performed similarly to the previous year.
The acquisition is in line with Wynnstay's stated strategy of acting as a
consolidator within the agricultural supplies industry, whilst at the same time
developing its joint venture activities. Glasson Group complements the
activities of Wynnstay's Arable and Feeds Divisions as well as the activities of
some of its joint ventures. It also widens Wynnstay's geographic reach adding a
new customer base that extends throughout the North of England to the South of
Scotland.
The directors of Wynnstay consider, having consulted with its Nominated Adviser,
WH Ireland Limited, that the terms of the transaction are fair and reasonable
insofar as its shareholders are concerned.
John Davies, Wynnstay's Chairman, commenting on the purchase, said,
'Malcolm Lowe, the founder and chairman of Glasson Group, has developed a
successful, well managed business over a number of years.
The business fits well with Wynnstay's activities and we look forward to working
closely with the management at Glasson to develop the business further in the
future.'
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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