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Agricultural Industrial Services (AIS), the Derby-based subsidiary of Dunstall Holdings, has acquired Rea Valley Tractors (RVT), headquartered near Shrewsbury. The buyout of RVT was financed by the Birmingham corporate banking centre of the Co-operative Bank.

RVT is one of the largest John Deere tractor dealerships in the UK. It was purchased for an undisclosed sum.

Simon Clarke, chairman and owner of Dunstall Holdings, said, “This acquisition significantly enhances the group’s scale and reach which will allow us to invest further in our facilities and staff to ensure that our customers continue to experience marketing leading levels of service.”

AIS, along with RVT, will now become the John Deere dealers responsible for Staffordshire and Derbyshire and Shrewsbury and mid-Wales respectively.

Both businesses will continue to trade under their separate identities, having retained all existing staff and facilities.

AIS is based at Ashacres Industrial Park, Draycott in the Clay, Derby.

Plans are now underway to relocate RVT’s main site from Pontesbury to a new bespoke building on a seven-acre site on the outskirts of Shrewsbury later in 2011.

Robert Ball, managing director of AIS, said: "When we eventually move to the new Shrewsbury premises, we will have a great deal more space with purpose-built workshops, increased spare parts capacity and a new style John Deere Place showroom, as befits a flagship dealer.”

The Birmingham corporate banking centre of the Co-operative Bank provided the funding for the acquisition of Rea Valley Tractors and the new headquarters building, as well as the working capital facilities.

Birmingham-based Springboard Corporate Finance acted as lead adviser to Dunstall Holdings. Justin Sparks of Springboard said: “We were delighted to support Dunstall Holdings on this significant transaction. It is an encouraging sign that financial institutions are beginning to seek to support businesses making strategic acquisitions. In addition, it further demonstrates that the Midlands’ finance community can help well run businesses to access finance and get deals done.”

Lichfield- based solicitors Keelys acted for Dunstall Holdings and David Beech from Irwin Mitchell Solicitors provided legal advice to the Co-operative Bank.