April 24, 2015

Alltech buys over Ridley Inc.

    

Alltech will acquire 100% of outstanding stocks in Ridley, one of the leading commercial animal nutrition companies in North America, for US$33.54 per share.

With the total consideration payable to Ridley shareholders at approximately US$429 million, the boards of directors of both companies have unanimously approved the merger.

The transaction is expected to close by the end of the second quarter this year.

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. The company's customers include livestock producers as well as equine and pet breeders. Its products are sold to producers by direct sales or through distributor and dealer channels.

In addition, Ridley possess a strong technical team with over 40 advanced degree staff who have produced some of the most widely recognised blocks and nutrition supplements. They will now be working with Alltech's team of approximately 150 PhD holders.

The deal will boost Alltech's primacy in science and allow it to serve a broader range of livestock and poultry producers in the US as well as delivering more advanced animal nutrition solutions to other countries.

"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, the 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 the market faster and more effectively. This combination creates a new model to deliver superior animal nutrition and tailored feeding programmes supported by robust scientific research and data analytics."

Lyon added the latest deal underscores Alltech's "continued momentum in growing its business through strategic acquisitions of best-in-class companies with trusted technology and brand recognition".

Steven J. Van Roekel, the president and CEO of Ridley, commented that the merger is about "bringing the best nutrition solutions to meat, milk and egg producers around the world".