LONDON, UK: Wynnstay Group, the agricultural provides group, has acquired the entire share capital of Tamar Milling Limited, a producer and provider of blended feed products, for an preliminary consideration of £1.4 million, with a deferred consideration of as much as £0.1 million payable depending on performance.
Established in 1994, Tamar is based in Whitstone, Cornwall, and manufactures and provides a vary of blended and coarse combine feed rations for dairy cows, cattle, and sheep to roughly 250 farmers, primarily within the south-west of England. Approximately 25,000 tonnes of feed is supplied annually.
Tamar additionally operates a profitable ‘on-farm’ grain milling service for farmers wanting to make use of home-grown or bought grain of their livestock rations. Following its acquisition, Tamar’s founder, Nick Furse, will join Wynnstay Group in a senior commercial feed role and proceed to lead Tamar’s operations.
In the year ended 30 September 2021, Tamar Milling generated revenues of £6.40m, and a revenue earlier than tax of £0.42m. Net assets at 30 September 2021 were £0.92m.
The acquisition of Tamar Milling is in line with the Group’s technique of buying companies that complement its existing actions and bring additional benefits.
Tamar considerably strengthens the Company’s presence within the south-west of England, provides a brand new farming buyer base, additional present chain relationships and significant cross-selling opportunities. It additionally establishes Wynnstay with its first feed manufacturing facility within the region, enabling it to present its personal bulk feed providing within the area.
The preliminary consideration of £1.4m paid on completion is topic to a net asset adjustment to be calculated based on completion accounts. The deferred consideration of as much as £0.1m is payable depending on product volumes transacted within the primary twelve months following completion. The Group is funding the acquisition from its existing resources.
The acquisition of Tamar is the potential acquisition referred to within the Company’s announcement of 17 August. The second bigger potential acquisition referred to within the identical announcement is no longer under consideration as commercially acceptable phrases weren’t reached. The Company continues to review a variety of acquisition alternatives that meet its strategic priorities.
Gareth Davies, Chief Executive Officer of Wynnstay Group plc, commented: “Tamar is a long-established, high-quality producer and provider of blended animal feed and ‘on-farm’ grain milling services to farmers within the south-west of England. Like Wynnstay, it locations a strong emphasis on buyer service, and has a significant buyer base.
“Tamar is extremely complementary and can be instantly earnings enhancing. It fulfills a quantity of acquisition criteria. It will increase our presence within the south-west, provides new farmer customers and provides us with our first feed manufacturing facility within the area. We look ahead to working with our new colleagues and to persevering with Tamar’s profitable growth.”