Alltech acquires Ridley Inc.
Alltech and Ridley Inc. have entered into a plan of arrangement agreement under which Alltech will acquire 100% of the outstanding stock of Ridley, for CAD $40.75 per share. The total consideration payable to Ridley shareholders is approximately CAD $521 million.
The price of CAD $40.75 per share represents a premium of approximately 23% to the 20-day volume weighted average price of Ridley's common shares on the TSX as of April 22, 2015. 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.
'Better performance and value to livestock and poultry producers'
"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 programmes 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."
'Advanced animal nutrition solutions'
"Joining Ridley with Alltech is about bringing the best nutrition solutions to meat, milk and egg producers around the world," said Steven J. VanRoekel, president and CEO of Ridley. "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 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 combined company will have a presence in over 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 USD $4 billion 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. Alltech has established a track record of successful acquisitions, having completed seven since 2011.
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