Cornish feed producer is purchased by growing firm
ALIVESTOCK feed producer in Cornwall has been acquired by agricultural supplies group Wynnstay in a deal which could reach a value of £1.5 million.
Tamar Milling, based in Whitstone, manufactures and supplies 25,000 tonnes of feed for dairy cows, cattle and sheep to around 250 farmers every year, mainly in the South West.
The family-run business also operates a grain milling service for farmers wanting to use home-grown or purchased grain in their livestock rations.
In the financial year ended September 30, 2021, Tamar generated revenues of £6.4m and a pre-tax profit of £0.42m, with £0.92m net worth of assets.
The deal has been completed for an initial consideration of £1.4m, with a deferred payment of up to £0.1m dependent on performance over the next year. Tamar’s founder, Nick Furse, will join Wynnstay in a senior commercial feed role and continue to lead the company’s operations.
Aim-listed Wynnstay, which is based in Powys in Wales, said it expected the purchase to be “immediately earnings enhancing”, giving the firm its first feed manufacturing facility in the South West and new farming customer base across the region.
Chief executive Gareth Davies said: “Like Wynnstay, [Tamar] places a strong emphasis on customer service, and has a significant customer base. Tamar is highly complementary and will be immediately earnings enhancing. It fulfils multiple acquisition criteria.”
The transaction is the latest for expanding Wynnstay, which bought Hampshire-based poultry feed manufacturer and supplier, Humphrey Feeds, and associated point-of-lay pullets business, Humphrey Pullets, for £9.5m in March.