Wynnstay acquires blended feed products business Tamar Milling

Wynnstay said on Thursday that it will make an initial consideration of £1.4m for the Cornwall-based business, funded from existing resources, with a deferred consideration of up to £100,000 payable dependent on performance.

The AIM-listed group, which expects the acquisition to be immediately earnings enhancing, said the addition of Tamar was in line with its strategy of acquiring businesses that complement its existing activities and bring further benefits.

"Tamar is a long-established, high-quality manufacturer and supplier of blended animal feed and 'on-farm' grain milling services to farmers in the southwest of England. Like Wynnstay, it places a strong emphasis on customer service, and has a significant customer base," said chief executive Gareth Davies.

"Tamar is highly complementary and will be immediately earnings enhancing. It fulfills multiple acquisition criteria. It increases our presence in the southwest, adds new farmer customers, and provides us with our first feed manufacturing facility in the area. We look forward to working with our new colleagues and to continuing Tamar's successful growth."

As of 0915 GMT, Wynnstay shares were down 0.81% at 610.0p.

Reporting by Iain Gilbert at Sharecast.com