Wynnstay expands its empire with Countrywide acquisitions
Powys-based agricultural supplies group Wynnstay has agreed to acquire eight stores from equestrian to farming retailer Countrywide Farmers, which is in administration.
Wynnstay has agreed to pay £800,000 in cash for the Countrywide stores, after reaching agreement with administrators KPMG.
On completion, the acquisition will take Wynnstay’s network of stores from 52 to 60.
Worcester-based Countryside Farmers went into administration in March, but administrators have continued to trade its 48 stores and seek buyers.
Five of the stores being acquired by Wynnstay, which is listed on the Alternative Investment Market, are located in Devon and Cornwall – which will expand its reach into the south-west of England marketplace.
The remainder will consolidate Wynnstay’s existing presence in Shropshire, Monmouthshire and Oxfordshire, with stores in Bridgnorth, Raglan and Thame respectively
The stores provide a range of products for farmers and the rural community, and operate similarly to Wynnstay Country Stores.
In the year to November 30, 2017, the new stores generated combined sales of £16.4m.
Following completion, Wynnstay intends to implement an integration and investment programme, and expects to see the benefits of a positive contribution from the stores start to come through over the course of 2019 and beyond.
Wynnstay’s chief executive 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.”
Earlier this year Wynnstay celebrated its 100th year in agriculture.
Mr Greetham said: “Having been established as a farmer co-operative on January 17, 1918, we’re extremely proud that, a century on, the business remains true to its roots and farmer-focused.
“The firm foundations established in Llansantffraid by the founding farmer members have enabled Wynnstay to grow into a national business that now spans from Scotland through to Lancashire and Yorkshire, into the Midlands, Wales, and down as far as the south-west coast.”
He said the business has adapted to the changing times in farming over the past 100 years and this has been an important part of its success.
Mr Greetham said: “From a postwar Britain, through the agricultural policy changes in the 1970s to the focus on technology that we are now seeing in the 21st century, we’ve always observed the needs of farmers.”