Alltech and Masterfeeds announced that they have entered into a share purchase, under which Alltech will acquire 100 percent of the outstanding shares of Masterfeeds, Inc., from Ag Processing Inc (AGP). This will provide Alltech complete ownership of Masterfeeds LP, a leading commercial animal nutrition company in Canada.
“This is a crucial time in agriculture, and Canadian farmers are facing ever-increasing pressures, including the continued drive to produce more with fewer resources,” said Dr. Pearse Lyons, founder and president of Alltech. “Masterfeeds provides the on-farm support that is critical to Canada’s farmers and ranchers. This new opportunity will enable more efficient delivery of superior animal nutrition and tailored feeding programs, supported by robust scientific research.”
Masterfeeds further strengthens Alltech’s presence in Canada by creating one of the country’s largest animal nutrition offerings. Alltech, Masterfeeds and EMF Nutrition, another Alltech-owned Canadian company, employ approximately 700 Canadians, operating 25 feed manufacturing and premix facilities, nine retail locations and seven distribution centers in a business spanning the entire country.
“Alltech’s investment strategy is unfolding in exciting ways,” stated Rob Flack, president and CEO of Masterfeeds. “Alltech’s primacy in science, supported by an extensive research and development program, is both cutting-edge and relevant. Masterfeeds’ proven on-farm feeding solutions will be strengthened through proprietary Alltech nutrition technology, adding further value to our customers throughout Canada.”
“Masterfeeds and Alltech are two of the most respected brand names in Canadian animal agriculture,” said Keith Spackler, CEO, Ag Processing Inc (AGP). “This acquisition is a significant development and is grounded in bringing the best nutrition solutions to farmers and ranchers.”
Masterfeeds will continue to be headquartered in London, Ontario, Canada, and led by its current Chief Executive Officer, Rob Flack. In addition, Alltech’s own entity, Alltech Canada, remains headquartered in Guelph, Ontario, serving the entire Canadian feed industry.
“I am confident that Masterfeeds’ future is bright under the ownership of Alltech. Our growth strategies will continue to be supported, creating opportunities both in Canada and abroad for our family of employees,” said Flack. “We are truly fortunate to become part of a financially strong, growth-oriented private company with a global vision.”
The combined company will have a presence in 128 countries with more than 4,700 employees worldwide. Both parties expect the acquisition to result in significant new synergies over time.
Completion of the acquisition is expected by year-end and is subject to the execution of typical conditions, including regulatory approvals.
Alltech has more than tripled its sales in the last three years and is on target to achieve $4 billion USD in sales in the next few years. The combined company will have annual revenues in excess of $2.1 billion
Since 2011, Alltech has completed 13 acquisitions successfully, with Masterfeeds becoming its 14th. This is Alltech’s second major acquisition in North America this year, following that of Ridley Inc. It is also Alltech’s second acquisition of a company headquartered in Canada, following the success in acquiring EMF Nutrition in 2013.
“This deal underscores our continued momentum in growing our business through strategic acquisitions of best-in-class companies with trusted technology and brand recognition,” said Steve Bourne, vice president of Alltech.
Alltech purchased Masterfeeds from Ag Processing Inc. AGP chief executive officer Keith Spackler said Masterfeeds has been an important part of AGP since 1991, and is one of the most respected names in Canadian animal nutrition. “Our belief is that Alltech’s acquisition of Masterfeeds creates an alliance that enhances the companies’ abilities to serve their customers.”
Spackler said, “This transaction is beneficial for the ongoing strategic and operational direction of AGP and furthers the Company’s ability to invest in new value-added opportunities that benefit our member-owners.”