AIM-listed Wynnstay has purchased Wrekin Grain, a grain marketing and agricultural inputs supplier, for a total that could rise to £4 million.

AIM-listed Wynnstay has purchased Wrekin Grain, a grain marketing and agricultural inputs supplier, for a total that could rise to £4 million.

Shropshire-based Wrekin recently announced revenues of £33.87 million and operating profits of £660,000 for the year ending 31 March. The company provides grain marketing services in the Midlands region.

The acquisition is said by Wales-headquartered Wynnstay to increase its profile in the national arable marketplace, with a particular emphasis in the grain trading sector. The buy comes on the back of Wynnstay’s expansion into the seeds sector in May 2010 with the £2.6 million purchase of Woodheads Seeds.

Ken Greetham, chief executive of Wynnstay, comments: ‘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.’

Under the terms of the deal, Wynnstay will combine Wrekin with its existing grain trading company, Shropshire Grain, and rebrand the business as Grainlink. The venture will be relocated to Wynnstay’s operations in Shrewsbury with the existing management team of Wrekin continuing on with its role within the Wrekin operations.

An initial £3 million is to be paid on completion with a maximum of £1 million payable based on a future profits formula.