3rd December 2013
Dow Schofield Watts provided lead advisory and due diligence services to NWF Group which has bought leading animal feed manufacturer, SC Feeds Limited.
NWF, the specialist agricultural and distribution business, is to pay up to £6.75m to acquire the Stone-based company.
The deal comprises an initial consideration of £6m in cash, to be satisfied from NWF’s existing banking facilities, and up to £750,000 in new ordinary shares in the company.
NWF said the deal would be earnings enhancing in the first full year.
SC Feeds has supplied ruminant feed since 1991 from its mill in Stone and produces more than 80,000 tonnes of compound and blended products per year. In the year ended 30 April 2013, SC Feeds reported a pre-tax profit of £760,000 and net assets of £1.25m.
Richard Whiting, chief executive of NWF Group, said “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.”
NWF currently supplies feed to more than 4,000 farmers across the UK.
Philip Price at Dow Schofield Watts, said “This is a very good example of the combined lead advisory and financial due diligence offering that Dow Schofield Watts has and is supporting corporate acquirers such as NWF with their strategic development. This is an excellent opportunity for NWF to strengthen their position as a leading supplier of agricultural products to UK farmers.”