Agricultural supplier Wynnstay has bought poultry feed business Humphrey Feeds and Pullets for £9.5m.
A further £2m could be paid if certain performance targets are met.
Humphrey Feeds & Pullets will continue to trade under its original name, while also being a subsidiary of Wynnstay Group Plc. Neil Richardson and Martin Humphrey will stay in their roles as managing director and sales director respectively.
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The poultry business supplies 1.1m point-of-lay pullets in the south of England and manufacturers about 110,000t of poultry feed annually.
Humphrey has an estimated 30% market share of the organic poultry feed market and supplies about 200 farmers in south England and Wales.
During the last financial year, it had pre-tax profits of £1.16m, and a turnover of £39.51m.
Wynnstay was established as a farmer co-op in 1918 and became a public limited company in 1992.
The agricultural supply group made a pre-tax profit of £10.99m and had a total revenue of £500.39m for the year to 31 October 2021.
Site redevelopment
The purchase includes manufacturing sites at both Twyford, Hampshire, and Calne, Wiltshire. Wynnstay intends to redevelop the site at Calne into a 185,000t-capacity mill to produce poultry and ruminant feed.
Gareth Davies, Wynnstay chief executive, said: “The acquisition will significantly extend our trading footprint in the south of England, enlarge our market share of poultry feed, a key target sector for us, increase our feed manufacturing capacity and bring additional farmer customers.
“Looking further ahead, with the redevelopment of the Calne manufacturing facility into a ruminant as well as poultry mill, there is scope to drive additional significant long-term trading benefits.”
Neil Richardson, managing director of Humphrey Feeds and Pullets, said the day-to-day operations and management of the business will remain unchanged, and customers will see no change in the products and service provided.
