Carr’s buys US feed business
CUMBRIAN agriculture and engineering group Carr’s Milling Industries has acquired a US feed block manufacturer through its US subsidiary.
AFS Inc has paid £600,000 for Western Feed Supplements based in Silver Springs, Nevada. The vendor was California’s largest feed manufacturer, Western Milling.
Carr’s said it plans to invest in a modernisation programme to create another state-of-the-art production facility for low moisture tubs, supplying the West Coast beef and dairy markets of the US.
The acquisition is expected to have a broadly neutral earnings impact during the current financial year, becoming earnings positive following the completion of the modernisation programme. Carr’s said it was also due to start work on a new feed plant in Lancaster next month.
Chief executive Tim Davies said: “The acquisition of Western Feed Supplements is a natural strategic step for Carr’s which follows our success in the USA feedblock market. WFS extends our geographic coverage in the USA in the low moisture tubs market and we expect to grow our market share in the feedblock business.”
In the year to September the group made profits of £13.1m on sales of £404.1m.
