May 6, 2011

Wynnstay acquires grain supplier Wrekin

UK agricultural and retail firm Wynnstay Group PLC (WYN.LN) has bought grain supplier Wrekin Grain Ltd. for GBP4 million (US$6.5 million).

Wynnstay is paying GBP3 million (US$4.9 million) cash for the Telford, Shropshire-based business, with a further GBP1 million (US$1.6 million) to follow dependent on performance milestones, a deal that significantly boosts the firm's presence in the national grain trading market.

The company will combine Wrekin with its existing grain trading company, Shropshire Grain, under the name GrainLink Ltd. The acquisition greatly expands Wynnstay's farming customer base.

For March 2010, Wrekin made an operating profit of GBP660,000 (US$0.93 million) on its revenue of GBP33.9 million (US$55.6 million).