Masterfeeds and Ridley’s Canadian feed business, Feed-Rite, have announced plans to merge. The new commercial livestock, poultry feed and nutrition company, dubbed Masterfeeds LP, will become the second largest feed company in Canada. The new company will operate, among other things, 22 feed manufacturing plants and employ over 500 people in a business spanning across Quebec, Ontario and the Prairie Provinces, according to a press release. Masterfeeds LP will be headquartered in London, Ont., and led by current Masterfeeds Inc. Chief Executive Officer, Rob Flack.
Each of Masterfeeds Inc. and Ridley Inc. will contribute essentially all of their Canadian feed operating assets in exchange for relative shareholdings in Masterfeeds LP. That transfer is expected to result in no material impact overall to Ridley’s balance sheet, nor is it expected to have any material effect on the structure or other operations of Ridley Inc. Both parties expect the merger to result in significant new synergies over time. Completion of the merger is expected to take 30-45 days and is subject to the execution of definitive agreements and normal conditions including regulatory approvals.
Masterfeeds (www.masterfeeds.com) has an 83-year history of research, innovation and service to animal agriculture in Canada. Headquartered in London, Ontario, Masterfeeds is a wholly-owned subsidiary of Ag Processing Inc. (AGP). AGP (www.agp.com), headquartered in Omaha, Nebraska, is a farmer-owned cooperative engaged in the procurement, processing, marketing and transportation of grains and grain products. AGP, which acquired Masterfeeds in 1991, is owned by 175 local cooperatives representing over 250,000 farmers throughout the Midwest, and five regional cooperatives representing farmers throughout the U.S. and Canada.
Ridley Inc. (www.ridleyinc.com), headquartered in Mankato, Minnesota and Winnipeg, Manitoba, is one of North America’s leading commercial animal nutrition companies. Ridley manufactures and distributes a full range of animal nutrition products under a number of highly regarded trade names. Ridley’s Canadian feed business, operates under the trade name Feed-Rite (www.feedrite.com).