Wynnstay Regulatory News (WYN)

3 Nov 2009 07:00



3 November 2009

AIM:WYN

WYNNSTAY GROUP PLC

("Wynnstay" or "the Group")

Acquisition

The Board of Wynnstay, the agricultural and retail group, is pleased to announce that it has completed the acquisition of the balance of the issued share capital of Youngs Animal Feeds Limited ("YAF") not already owned by the Group. Wynnstay previously owned 50% of the issued share capital of YAF, an equine feed manufacturing and pet products distribution business based in Standon, Staffordshire, with additional distribution centres in Congleton, Cheshire and Huyton on Merseyside. Following this acquisition, YAF is now a wholly owned subsidiary of the Group.

The Group is acquiring the balance of the issued share capital of YAF for a net cash consideration of £0.75 million payable on completion. For the year ended 30 April 2009, YAF recorded profit before tax of £208,000 on revenues of £9.3 million and its net assets at 30 April 2009 were £1,461,000. Trade with the Group amounted to £2.1 million. 

The Board is also pleased to confirm that results for the year ended 31 October 2009 will be in line with current market expectations and looks forward to updating shareholders on trading when results for the year are reported in mid January 2010.

Ken Greetham, Chief Executive of Wynnstay, said,

"Having built up a strong working partnership with Youngs Animal Feeds over the past eight years as a joint venture, we are delighted now to have acquired the business in full. 

Youngs Animal Feeds is a leading equine feed manufacturer with a well established position in the wholesale market and represents a highly complementary fit with our existing feed activities. As we integrate the business within the Group, we look forward to maximising its full growth potential."

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