“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 Kentucky-based Alltech, in a statement announcing the deal on April 23.
Alltech currently has around 3,500 employees with a presence in 128 countries. The acquisition of Ridley would bring the company’s workforce to 4,200 employees.
“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, headquartered in Minnesota. “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.”
The price is equal to $40.75 per share, a premium of approximately 23 percent over the 20-day volume weighted average price of Ridley’s common shares on the TSX as of April 22, 2015.
Fairfax Financial Holdings, which owns approximately 78 percent of the common shares in Ridley has agreed to vote in favour of the deal. The transaction is still subject to shareholder, regulatory and court approvals, including approval under Manitoba’s Corporations Act, but it is expected to close in the first half of 2015.
Ridley has three main operating divisions — Hubbard Feeds, Ridley Block Operations and Ridley Feed Ingredients — and is a partner in one joint venture, Masterfeeds LP. Formed with the merger of Feed-Rite and Masterfeeds in 2012, Masterfeeds operates 20 feed plants and employs more than 500 people from Quebec to Alberta.