Agricultural supplier Wynnstay has bought poultry feed business Humphrey Feeds and Pullets for £9.5m.
A further £2m could be paid if certain performance targets are met.
Humphrey Feeds & Pullets will continue to trade under its original name, while also being a subsidiary of Wynnstay Group Plc. Neil Richardson and Martin Humphrey will stay in their roles as managing director and sales director respectively.
The poultry business supplies 1.1m point-of-lay pullets in the south of England and manufacturers about 110,000t of poultry feed annually.
Humphrey has an estimated 30% market share of the organic poultry feed market and supplies about 200 farmers in south England and Wales.
During the last financial year, it had pre-tax profits of £1.16m, and a turnover of £39.51m.
Wynnstay was established as a farmer co-op in 1918 and became a public limited company in 1992.
The agricultural supply group made a pre-tax profit of £10.99m and had a total revenue of £500.39m for the year to 31 October 2021.
The purchase includes manufacturing sites at both Twyford, Hampshire, and Calne, Wiltshire. Wynnstay intends to redevelop the site at Calne into a 185,000t-capacity mill to produce poultry and ruminant feed.
Gareth Davies, Wynnstay chief executive, said: “The acquisition 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 ahead, 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.”
Neil Richardson, managing director of Humphrey Feeds and Pullets, said the day-to-day operations and management of the business will remain unchanged, and customers will see no change in the products and service provided.