Acquisition of Wrekin Country Stores (December 2007)

Wynnstay is delighted to announce that it has acquired the goodwill and certain assets of Wrekin Country Stores (“Wrekin”).

Wrekin has two stores in attractive retail locations, in Wellington, near Telford, and Stafford. Each store sells a range of agricultural requisites, gardening, equine and pet products, as well as rural clothing, to both farmers and the wider rural community. As such, they represent an excellent fit with Wynnstay’s existing country store format. For the year to 31 May 2007, the business made a turnover of £1.6m.

Wynnstay currently has 27 stores which cater for the farming and rural community, located across North & Mid-Wales, Shropshire, Staffordshire, Hereford, Worcestershire and Lancashire. The addition of these two new stores strengthens the Group’s presence in the Border counties.

The Group has a strong history of successfully integrating retail acquisitions, with the introduction of its strategy historically driving margin improvements at acquired stores. The Group believes that there is excellent potential for growth at both stores and following the acquisition, intends to introduce improved purchasing, marketing and product offering in line with the practices in place at existing stores.

The initial consideration is £7,000 with a deferred consideration element dependent on certain performance criteria for the two years following completion. As part of the transaction, Wynnstay will acquire stock worth approximately £260,000 and other assets of £32,500.

Commenting on the acquisition, Bernard Harris, Managing Director of Wynnstay said,

“Wynnstay has in-depth experience of the retail market, with 27 country stores in Wales and the Border counties, and an excellent track record in integrating new stores.

We are confident that we can use our expertise to maximise both stores’ potential and we look forward to working together to grow the business.”

For further details please contact:

Bernard Harris, Managing Director
Paul Roberts, Finance Director

Tel: 01691 828512