Alltech acquires Ridley Inc.

Combined company to be a global leader in animal health and nutrition with annual revenues in excess of USD $1.6b.

Alltech and Ridley Inc. announced April 23 that they have entered into a plan of arrangement agreement under which Alltech will acquire 100% of the outstanding stock of Ridley, one of the leading commercial animal nutrition companies in North America, for $40.75 (Canadian) per share. The total consideration payable to Ridley shareholders is approximately $521 million (Canadian).

The $40.75 per share price represents a premium of approximately 23% to the 20-day volume weighted average price of Ridley's common shares on the Toronto Stock Exchange as of April 22. The closing price of the Ridley shares on the TSX on April 22, 2015 was CAD $33.94.

The boards of directors of both companies have unanimously approved the merger.

"This transformative transaction that combines two industry leaders allows Alltech to deliver better performance and value to livestock and poultry producers across the globe," said Dr. Pearse Lyons, founder and president of Alltech. "With Ridley's leading animal nutrition supplements, block products, extensive livestock and poultry producer distribution network and on-farm presence, we will be able to bring our advanced nutrition technology to market faster and more effectively. This combination creates a new model to deliver superior animal nutrition and tailored feeding programs supported by robust scientific research and data analytics. This deal underscores our continued momentum in growing our business through strategic acquisitions of best-in-class companies with trusted technology and brand recognition."

Steven J. VanRoekel, president and chief executive officer of Ridley, said, "Joining Ridley with Alltech is about bringing the best nutrition solutions to meat, milk and egg producers around the world. Alltech is the technological leader with a broad global footprint so by uniting forces we will create a scalable platform to grow and market solutions to enhance the profitability of producers. We are also joining a financially strong company that is committed to investing in science and innovation so that we can deliver the most advanced animal nutrition solutions."

Ridley is one of the largest commercial animal nutrition businesses in North America. Ridley manufactures and markets a full range of animal nutrition solutions, including formulated complete feeds, premixes, feed supplements, block supplements, animal health products and feed ingredients. Ridley's customers include livestock producers as well as equine and pet breeders. Ridley's products are sold to producers by direct sales or through distributor and dealer channels.

The combined company will have a presence in more than 128 countries and 4,200 employees worldwide. Alltech has more than doubled its sales in the last three years and is on target to achieve $4 billion (U.S.) in sales in the next few years.

The transaction is subject to approval by Ridley shareholders, regulatory review and other customary closing conditions. The transaction is expected to close by the end of the second quarter.

Founded in 1980 by Dr. Pearse Lyons, Alltech improves the health and performance of people, animals and plants through natural nutrition and scientific innovation. With more than 3,500 employees and a presence in 128 countries, the company has developed a strong regional presence in Europe, North America, Latin America, the Middle East, Africa and Asia.

Ridley, headquartered in Mankato, Minn., is one of the leading animal nutrition companies in North America, serving customers mainly in the U.S. and Canada. Ridley employs more than 700 people in the manufacture, sales and marketing of a full range of animal nutrition products under highly regarded trade names.

Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish