Telford grain supplier swallowed by rival for £4m

SHROPSHIRE agricultural supplier Wrekin Grain has been acquired by rival Wynnstay in a £4m deal.

Telford-based Wrekin last year generated revenues of £33.87m and operating profits of £0.66m, and the deal involves a £3m cash element, with a further £1m consideration based on future profits.

Wynnstay, which has operations in Staffordshire, Yorkshire and the North West, said the acquisition more than doubled its existing grain marketing volumes and extended the group’s geographic area and farming customer base.  
Wrekin provides grain marketing services, seeds and fertilisers throughout the Midlands.

The acquisition follows Wynnstay’s expansion in the seeds sector last year, with the purchase of Woodheads Seeds.
 
Wynnstay said it intends to combine Wrekin with its existing grain trading company, Shropshire Grain, and to rebrand the enlarged business as GrainLink Limited. The acquired activities will be relocated to the Group’s arable operations at Astley in Shrewsbury. The existing management team at Wrekin will join the group, managing Wrekin’s integration.

Wynnstay chief executive Ken Greetham said: “Wrekin has established a strong reputation for its market knowledge and high service standards and I am delighted to have agreed its acquisition.

“We believe that the integration of the business with our current grain activities will provide sufficient scale to enable the combined team to create a business with a national presence in the UK grain market. We look forward to working with the Wrekin team to build the business.”