December 4, 2013
NWF Group acquires SC Feeds worth US$11 million
NWF Group has acquired the entire issued share capital of SC Feeds Ltd, a leading animal feed manufacturer based in Stone, Staffordshire.
The total consideration for the acquisition is up to £6.75 million (US$11 million) on a cash free, debt free basis (subject to completion accounts). This is comprised of an initial consideration of £6.0 million (US$9.8 million) in cash, which will be satisfied from NWF''s existing banking facilities and up to £0.75 million (US$1.2 million) to be satisfied by the issue of new ordinary shares in NWF. The final quantum of the equity consideration payable will be determined following the agreement of completion accounts in early 2014. The acquisition will be earnings enhancing in the first full year.
NWF, the specialist agricultural and distribution business, is a leading national player in the production and supply of ruminant animal feed for dairy cows, beef and sheep from its operations stretching from Scotland to Devon. NWF supplied 481,000 tonnes of feed in the financial year ended May 31, 2013.
SC Feeds has supplied ruminant feed since 1991 from its mill in Stone and produces in excess of 80,000 tonnes of compound and blended product per annum. In the year ended April 30, 2013, SC Feeds reported profit before taxation of £0.76 million (US$1.25 million) and net assets of £1.25 million (US$2 million).
Richard Whiting, Chief Executive of NWF Group, commented, "I am delighted to announce the acquisition of SC Feeds which joins the NWF group of companies. This exciting acquisition is in line with the strategic ambition we have set out to develop the Group towards a greater focus on agriculture and meeting the needs of farmers in the UK."