Wynnstay swoops for Wrekin Grain
Wrekin Grain, based in Telford, has been acquired by Welsh agricultural and retail group Wynnstay. The business was purchased for an anticipated consideration of £4m.
Of the price, £3m will be payed on completion of the acquisition and a maximum additional £1m will be payable based on a formula for future profits, said Wynnstay.
The acquisition more than doubles Wynnstay's existing grain marketing volumes and further extends the group's geographic trading area and farming customer base.
For the year ended 31 March 2010, Wrekin generated revenues of £33.87m and operating profits of £0.66m.
Wynnstay said it intends to combine Wrekin with its existing grain trading company, Shropshire Grain, and to rebrand the enlarged business as GrainLink Limited. The acquired activities will be relocated to the company's arable operations at Astley in Shrewsbury.
Ken Greetham, chief executive of Wynnstay, said: "Wrekin has established a strong reputation for its market knowledge and high service standards and I am delighted to have agreed its acquisition. We believe that the integration of the business with our current grain activities will provide sufficient scale to enable the combined team to create a business with a national presence in the UK grain market. We look forward to working with the Wrekin team to build the business."
