CARMARTHEN-BASED agricultural business Carmarthen & Pumsaint Farmers has agreed a £8.2 million deal to become part of the Wynnstay Group.
Following director’s recommendations and a positive member shareholder’s vote, which will be held at special meetings in August and September, it is hoped the deal will be completed shortly, said a company spokesman.
If the acquisition is approved, an initial cash payment from Llansantffraid-based Wynnstay of £4.3 million would be made on completion.
There would then be two further cash payments — one month and two months after completion — which are estimated to be approximately £2.6 million.
A Wynnstay statement said: “The total estimated consideration of £7.2 million reflects the anticipated book value of the Target Assets, which will be subject to final confirmation, and £1 million for the goodwill of the business.”
Trading for more than 110 years, Carmarthen & Pumsaint Farmers has a long history within the region having opened its first store in Carmarthen in 1903.
It has stores in Cardigan, Carmarthen, Cross Hands, Haverfordwest, Llandeilo, Llandovery and St Clears.
Paul Rogers, Managing Director of Carmarthen & Pumsaint Farmers, said: “Becoming part of the Wynnstay family is a very positive move for our business, shareholders and customers, as the regional farming community is being challenged every day with changing climatic patterns and increasing financial pressures.”
Roger Evans, Chairman of Carmarthen & Pumsaint Farmers Limited and local farmer, added: “From a farmer’s perceptive, joining the Wynnstay Group can only benefit the regional farming community, while securing the future prosperity of the organisation for its shareholders.
“With ever-changing demands on agricultural products, we can only gain by shortening the supply chain with Wynnstay’s manufacturing facilities and having their feed and arable product development programme behind us.”
“Farming is a very tough business, competitiveness is key and this opportunity offers our member’s this benefit.”
Ken Greetham, chief executive of Wynnstay, the mid Wales based agricultural supplies business, said: “We are delighted to announce the director’s recommendation for Carmarthen & Pumsaint Farmers to join the Wynnstay Group.
“The two businesses enjoy great synergy, with a mixture of traditional agricultural product distribution along with a strong retail network.”