Acquisition

RNS Number : 0769O

Carr's Milling Industries PLC

23 June 2010

 



IMMEDIATE RELEASE

23 June 2010

                       CARR'S MILLING INDUSTRIES PLC                         

("Carr's" or "the Company")

Carr's (CRM.L), the agriculture, food and engineering group, is delighted to announce that it has acquired Scotmin Nutrition Limited ("Scotmin") and A C Burn Limited ("borthwickburn") from Buccleuch Country Limited for a total consideration of £5.62 million payable in cash out of the Company's existing banking facilities. 

Scotmin is a manufacturer and distributor of animal feed supplements, based in Ayr, Scotland, where it employs 41 people.  It has been trading for over 31 years and is a major supplier to the Scottish market.  The products manufactured and supplied by Scotmin include mineral supplements, protein balances, molassed feed mineral blocks, forage additives and colostrum products.

For the year ended 31 October 2009, Scotmin generated revenues of £8.0 million and operating profit of £0.55 million.  On completion, Scotmin's net assets and gross assets are expected to amount to £2.42 million and £4.31 million respectively. 

The acquisition of Scotmin, for £4.82 million, will create one of the UK's leading feed and mineral block manufacturer and supplier which will be well placed to achieve growth in revenues and profits.

Scotmin has established a strong reputation for its supplement range which will complement the existing range of feed block products currently manufactured and marketed by Caltech.  The enlarged business will offer an outstanding range of high quality, proven products to livestock farmers seeking to enhance the efficiency of forage utilisation.  For Scotmin, this will result in opportunities to sell its range of supplements to existing Caltech feed block customers and distributors both in the UK and Europe.

In addition to expanding Scotmin's trading area outside its Scottish homebase, integration will result in significant buying and other efficiencies which are expected to boost profitability in the first year following acquisition.

The management team at Scotmin will remain with the business and will oversee the development of the many cross selling opportunities the Company expects to exist for the enlarged business.

borthwickburn, which is being acquired for £0.8 million, is engaged in the sale of animal feed and proprietary animal health products and trades from three locations - Jedburgh, Selkirk and Berwick. The acquisition extends the number of retail branches operating in northern England and Scotland from 15 to 18.

For the year ended 31 October 2009, borthwickburn generated revenues of £3.2 million and operating profit of £28,000. On completion, borthwickburn's net assets and gross assets are expected to amount to £0.53 million and £1.17 million respectively.

Following integration, both Scotmin and borthwickburn are expected to enhance the Company's earnings for the financial year ending 3 September 2011. 

The Board expects to issue Carr's Interim Management Statement for the third quarter of the current financial year by mid-July.

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Enquiries:

Carr's Milling Industries plc   Chris Holmes (Chief Executive) Ron Wood (Finance Director)	01228-554 600
Bankside Consultants Limited Simon Bloomfield Rose Oddy	020-7367 8861 020-7367 8863

 

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