Wynnstay to buy Countrywide Farmers stores

AIM-listed agricultural supplies group Wynnstay has agreed with administrators to buy the business and assets of eight stores from Countrywide Farmers' network of outlets for an initial cash consideration of £0.8m.

Five of the stores are located in Devon, strategically extending Wynnstay's geographic reach in the South West of England, particularly Cornwall, following an acquisition in the country last month. Meanwhile, the remainder will help to consolidate Wynnstay's existing presence in Shropshire, Monmouthshire and Oxfordshire, with stores in Bridgnorth, Raglan and Thame, respectively.

The new stores provide a range of products for farmers and the rural community and operate similarly to Wynnstay Country Stores. At completion, the total number of Wynnstay Country Stores will increase to 60 outlets from 52.

In the year to 30 November 2017, the new stores generated sales of £16.4m.

Chief executive officer Ken Greetham said: "We are very pleased to have acquired eight country stores previously operated by Countrywide Famers. Their addition increases our footprint in both our existing trading heartland, and in the South West of England, in particular giving us an increased profile in Cornwall and Devon.

"Farmers and the rural community are at the heart of Wynnstay's offering and we look forward to welcoming new customers to the group, as we introduce our products and services across these new stores."

At 1320 BST, the shares were down 0.1% to 467p.