Wynnstay, the agricultural supplies group, is pleased to announce the acquisition of Hampshire-based poultry feed manufacturer and supplier, Humphrey Feeds Ltd. At the same time, the Group is also acquiring an associated point-of-lay pullets business, Humphrey Pullets Ltd. The two businesses, which trade as ‘Humphrey Feeds & Pullets’, are being acquired for an initial consideration of £9.5 million in cash.

These acquisitions are a major step forward in Wynnstay’s plans to expand its presence in the South of England, increase its market share in free-range poultry feed, and expand its feed manufacturing capacity. Wynnstay expects the acquisitions to be immediately earnings enhancing, benefiting shareholders.

Part of a family-owned enterprise, Humphrey Feeds & Pullets, has an 85-year history, and supplies a range of poultry feed, including organic feed. Feed manufacturing is based at a production facility in Twyford, with a second feed mill in Calne, Wiltshire, although this is currently not in use. In 2021, approximately 109,000 tonnes of poultry feed was sold, and Wynnstay estimates the addition of Humphrey Feeds & Pullets will increase its share of the market for free-range poultry feed, a growing sector, from c.6% to c.11%.

Pullet-rearing supports the main feed business and, in the current financial year, around 1.1m pullets are expected to be reared and sold when pullets reach egg-laying stage at around 16 weeks. The pullet activity accounts for approximately 7% of Humphrey’s poultry feed sales.

Following completion, the management team of Humphrey Feeds & Pullets will join Wynnstay, adding further significant expertise and relationships, both in farming and in the supply chain. Humphrey Feeds & Pullets has a base of around 200 poultry feed farmers, mostly in the South of England, including in the South West, but also in the Midlands and Wales.

As part of its expansion plans, Wynnstay intends to redevelop the currently mothballed mill at Calne to create a modern, c. 185 tonne capacity facility, manufacturing both poultry and ruminant feed, and with organic certification. Planning permission is already in place for the project. Once the redevelopment is complete, the Wynnstay Board anticipates that it will open up major opportunities for the Group to develop its multi-species feed sales in the region. The Calne mill is expected to provide benefits in terms of its location relative to Wynnstay’s existing feed mills at Llandsantfraid and Carmarthen. Wynnstay management will be able to move production between the three mills in order to support further local sales growth and improve efficiencies in transport logistics.

image expired

Gareth Davies, Chief Executive Officer of Wynnstay Group plc, commented:

“This is an excellent acquisition for Wynnstay. Humphrey is a long-established, family-owned business, with an 85-year history, which prides itself on ‘advancing poultry performance’. It makes a highly complementary addition to the Group, which will be readily integrated, and is expected to be immediately earnings enhancing.

“Humphrey fulfils multiple acquisition criteria for us. It will significantly extend our trading footprint in the South of England, enlarge our market share of poultry feed, a key target sector for us, increase our feed manufacturing capacity, and bring additional farmer customers.

“Looking further out, with the redevelopment of the Calne manufacturing facility into a ruminant as well as poultry mill, there is scope to drive additional significant long-term trading benefits.”