Wynnstay acquires Humphrey Feeds & Pullets for £9.5m

Gareth Davies, CEO of Wynnstay, said the acquisition will enlarge the firm's market share of poultry feed
Gareth Davies, CEO of Wynnstay, said the acquisition will enlarge the firm's market share of poultry feed

Wynnstay, the agricultural supplies group, has acquired Hampshire-based poultry manufacturer Humphrey Feeds & Pullets for £9.5 million.

Wynnstay Group has acquired the poultry feed manufacturer and supplier for an initial consideration of £9.5 million in cash.

The acquisition is part of its plans to expand in the South of England, increase its market share in free-range poultry feed, and up its feed manufacturing capacity.

Part of a family-owned enterprise, Humphrey Feeds & Pullets has an 85-year history, supplying 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, 109,000 tonnes of poultry feed was sold, and Wynnstay estimates the addition of Humphrey will boost its share of the market for free-range poultry feed from 6% to 11%.

Pullet-rearing supports the main feed business and, in the current financial year, around 1.1 million 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 percent of Humphrey’s poultry feed sales.

As part of its expansion plans, Wynnstay intends to redevelop the currently mothballed mill at Calne to create a 185-tonne capacity facility, manufacturing both poultry and ruminant feed, and with organic certification.

Once the redevelopment is complete, Wynnstay anticipates that it will open up opportunities for the Group to develop its multi-species feed sales in the region.

Gareth Davies, CEO of Wynnstay Group plc, said it was an "excellent acquisition" for the firm.

"It makes a highly complementary addition to the Group, which will be readily integrated, and is expected to be immediately earnings enhancing.

“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.”

Following completion, the management team of Humphrey Feeds & Pullets will join Wynnstay, the company confirmed.

Humphrey 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.