April 30, 2015 - Alltech and Ridley Inc. recently announced that they have entered into a plan of arrangement agreement under which Alltech will acquire 100 per cent of the outstanding stock of Ridley, one of the leading commercial animal nutrition companies in North America, 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 per cent 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.
Dr. Pearse Lyons, founder and president of Alltech, said in a release that Alltech will be able to bring its nutrition technology to market faster and more effectively by utilizing and investing in Ridley's supplements, block products, extensive livestock and poultry producer distribution network and on-farm presence.
Ridley is one of the largest commercial animal nutrition businesses in North America. 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. Ridley’s customers include livestock producers as well as equine and pet breeders. Ridley’s products are sold to producers by direct sales or through distributor and dealer channels.
The combined company will have a presence in over 128 countries and 4,200 employees worldwide. 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.