Cefetra Ltd has today (22 August) confirmed that final payments due to the farmer shareholders of Wessex Grain following the acquisition have been processed, drawing the takeover to a successful conclusion.
Cefetra, a leading UK agri-business, acquired the entire share capital of Wessex Grain through a multi-million pound bid after receiving almost 100% approval from shareholders in November 2015. The remaining 50p balance of the £5.75 per share will be paid in cash to the holders by the end of August
Since the acquisition, Wessex Grain has reported growth in its export programme with an increased number of grain vessels completing their journey to European ports with malting barley, OSR, milling oats and feed barley.
Simon Wilcox, previously managing director at Wessex Grain, commented: “The process of becoming part of Cefetra has developed well and I now feel the two businesses have fully integrated, with significant benefits to Wessex Grain and our farmer growers already evident.
“Our export programme has expanded with additional vessels being loaded out of south coast ports increasing our total tonnage by some 20%. Cefetra has also invested significantly, injecting a six-figure sum into the business to improve facilities at the Henstridge store and office.
“The Wessex Grain team are now playing a key role in developing Cefetra’s grain origination business that is expanding nationwide. New farm grain buyers are covering East Anglia, the North-East and Scotland and further recruitment is ongoing. Cefetra provides farmer growers access to key markets within the UK and across Europe.”
Andrew Mackay, managing director at Cefetra, added: “This deal benefitted all parties; shareholders by an immediate cash return, Wessex Grain by enhancing its position as a strong regional grain buyer and more crucially farmers across the region by offering them a major independent and financially strong business to work with to market their grain. Shareholders will now get the remaining balance as agreed and on schedule.
“Moving forward we plan to build upon the success of this acquisition to continue expanding both the farm grain origination business across the UK and tonnage, alongside the range of operations for Wessex Grain and its farming suppliers.”