Seed firm to grow thanks to £3m deal
HISTORIC Yorkshire seed processing and supply business Woodheads Seeds has been acquired by AIM-listed agricultural and retail group Wynnstay Group in a deal valued at more than £3m.
Selby-based Woodheads Seeds has been trading for more than 200 years and provides a range of high quality, certified cereal and grass seed from its production and processing facilities.
The acquistion by Wynnstay, based in Llansantffraid, Wales, is dependent on trading performance up to April 30, 2012.
Jonathan Woodhead, managing director of Woodheads Seeds, said: “We are very pleased to have secured this deal as it will provide the opportunity for further development and expansion as well as securing the long term future of the business.
“We have worked very hard to gain a significant and growing market share which helped make us an attractive proposition to Wynnstay.
“By becoming part of the group we will be able to benefit from greater economies of scale whilst continuing to provide our customers with an outstanding service.”
For the year ended April 30, 2009, Woodheads generated revenues of £15.87m and operating profits of £570,000. Net assets on completion are expected to amount to £380,000.
At present, Wynnstay has 43 outlets across the West Midlands, Wales, and the North West of England, including 28 Wynnstay Stores, and 15 Just For Pet Stores.
Ken Greetham, Wynnstay’s chief executive, said: “Woodheads Seeds has established a strong reputation within its trading region for its products and service standards. I am delighted to have agreed its acquisition and believe that Woodheads’ addition to the group establishes us as a leading processor of cereal seed in the UK.
“The acquisition is also an important one for the group strategically. Woodheads’ presence in a key farming region in the north of England represents an opportunity for the group to expand its other agricultural activities into new geographic markets.”
Woodheads Seeds was advised by a team from Yorkshire law firm Gordons led by corporate partner James Fawcett.
The firm worked alongside Leeds accountants Brown Butler which provided corporate finance advice, led by Partner James White.
