THE H&H Group has become the largest auction mart operator in the UK after an £8.2m deal to buy John Swan PLC.

Carlisle-based H&H already had seven marts in Durham, Northumberland and Cumbria. The deal adds Swan's two marts at Wooler in Northumberland and Newton St Boswell's in the Scottish Borders, along with land property around Edinburgh.

Brian Richardson, H&H Group chief executive, said the acquisition was a perfect fit and gave them two marts in a geographical area which provided growth opportunities.

H&H marts already have a £120m a year turnover and the two extra marts are expected to add a further £45m.

H&H first approached John Swan three years ago, but formal discussions did not begin until December 2014. A formal offer was made in July and shareholders voted 100 per cent in favour.

The formal completion was announced yesterday and will see Swan shareholders receive £13.50 per share with an option to take H&H shares in lieu of cash.

Existing John Swan staff have all switched to H&H which is already looking to recruit for new roles.

Mr Richardson said: "This has been a long process but it is pleasing we can now announce the completion of the deal, which combines two companies with a long heritage in agricultural livestock.

"H&H is firmly focused on this sector and will look to develop throughput at the two sites, alongside providing its land agency and rural insurance services to the customer base at Swans.

"It is part of our strategy for developing the group as a broad-based business with a focus on the rural and livestock sector. We have a strong balance sheet and a fantastic team at H&H, the addition of John Swan and their team to our business will further strengthen our portfolio and provide new areas for us to develop and grow market share."

Finance for the deal was provided by the Clydesdale Bank.

H&H Group also announced its results for the year ending June 30. They shows profits of £1.155m - the fifth year running to achieve more than £1m – and increased shareholders’ funds of £16.995m.

Mr Richardson said it was a solid result which shows the strength of the business in a year that has been more challenging, with lower stock and produce prices for much of our customer base.

He said: "Harrison and Hetherington have performed very strongly and we have seen improvements in market share and numbers marketed through the business."

After a slow start the H&H estate agency had seen house sales rise dramatically in 2015, H&H Insurance Brokers continued to develop market share and in June announced a new MD with a brief to increase turnover, H&H Reeds Printers will receive further investment to provide greater capacity in the coming year.