Acquisition of PSB (Country Supplies) Ltd

RNS Number : 5790E

Wynnstay Group PLC

01 June 2012

 



AIM: WYN

WYNNSTAY GROUP PLC

("Wynnstay" or "the Group")

Acquisition of PSB (Country Supplies) Ltd

The Board of Wynnstay, the agricultural and retail group, is delighted to announce that it has acquired PSB (Country Supplies) Limited ("PSB"), an independent agricultural merchant, based in Tetbury, Gloucestershire, for an anticipated consideration of £0.5m. Of this, £0.35m is payable in cash on completion and a further consideration, up to a maximum of £0.15m, may also be payable, based on a formula to be applied to future profits.

The acquisition further extends the Group's geographic trading area and farming customer base, as well as adding an additional outlet to the Group's Country Store chain.  It also continues the Group's strategy of acting as a consolidator in the fragmented agricultural supplies sector.

For the year ended 30 April 2011, PSB generated revenues of £2.9m and adjusted operating profits of £0.06m. Its net assets at completion are expected to amount to £0.05m. PSB supplies a full range of agricultural inputs to farmers and rural dwellers including feeds, animal health products and hardware items. Wynnstay intends to integrate PSB into its existing specialist retail business immediately, developing cross-selling opportunities while retaining the PSB trading name.   

The Directors expect to announce Wynnstay's half year results for the six months ended 30 April 2012 on 26 June 2012.

Ken Greetham, Chief Executive of Wynnstay, said,

"PSB has a strong local reputation for its high service standards and I am delighted to have agreed its acquisition. We believe that the integration of the business with our current activities will provide additional opportunities and prove a very useful geographic expansion for our business."

Enquiries:

Wynnstay Group plc	Ken Greetham, Chief Executive Paul Roberts, Finance Director	T: 01691 828512
Biddicks	Katie Tzouliadis / Sophie McNulty	T: 020 3178 6378
WH Ireland Limited (Nominated Adviser & Joint Broker)	Robin Gwyn	T: 0161 832 2174
Shore Capital (Joint Broker)	Stephane Auton / Edward Mansfield	T: 020 7408 4090

 

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