The Wynnstay Group has made a significant size and geographical expansion to its Wynnstay Stores retail arm through the acquisition of Agricentre.
Agricentre, established in 1961, has its headquarters in Calne, Wiltshire, from where it operates a network of eight retail outlets in the south and south west. The business supplies a wide range of agricultural inputs such as animal health, dairy hygiene and animal nutrition products as well as feed-related equipment and other hardware.
The eight stores are located in Bristol, Calne, Langport, Honiton, Salisbury, Shepton Mallet, Sturminster Newton and the Isle of Wight. The business has annual revenues of some £15 million, but is expected to return a small operating loss for its current financial year.
Before this move, the Group’s Specialist Retail Division comprised 43 country stores - the last added last month in Cardiganshire (ATN August 28th) and 20 Just for Pets stores. The division made an operating profit of £4.88m on sales of £104.62m in the full year to October 31st.
Wynnstay Group chief executive Ken Greetham describes the deal as an important strategic move for the company, as it extends the Group’s trading presence into a major new geographic region. Wynnstay expects to integrate the business into its existing stores network and to significantly enhance Agricentre’s product range and operational efficiencies. However the full benefits of the acquisition are not expected to show for twelve months.
“Agricentre has been supplying farmers in the West Country with agricultural inputs for 54 years and I am delighted to announce that we have agreed terms to acquire the business,” states Mr Greetham. “It is a strategically important move for us as it extends Wynnstay into a new trading area. We look forward to working with the existing management team to further develop the business and bring new products and services to its customer base.”