IRELAND - A merger of two global livestock feed companies has been agreed.
Alltech and Ridley Inc. announced that they have entered into a plan of arrangement agreement under which Alltech will acquire 100 percent of the outstanding stock of Ridley, one of the leading commercial animal nutrition companies in North America.
The combined company will have a presence in over 128 countries and 4,200 employees worldwide.
Although the move is still waiting on approval by shareholders, regulatory review and other customary closing conditions, the boards of directors of both companies have unanimously approved the merger.
The remaining Ridley shares were purchased by Alltech for CAD $40.75 per share, and the total amount 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 transaction is expected to close by the end of the second quarter.
The two companies both have a strong focus on research and development, and through the merger the company hopes to sustainably deliver the most advanced animal nutrition solutions to a broad range of consumers.
Dr Pearse Lyons, founder and president of Alltech, said: “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 deal underscores our continued momentum in growing our business through strategic acquisitions of best-in-class companies with trusted technology and brand recognition.”
“Joining Ridley with Alltech is about bringing the best nutrition solutions to meat, milk and egg producers around the world,” added Steven VanRoekel, president and CEO of Ridley.
TheCattleSite News Desk
Top image via Shutterstock