Nicholasville-based animal nutrition giant Alltech announced on Thursday that it is purchasing Minnesota-based Ridley Inc. for $426 million.
Ridley, which has manufacturing facilities in the Midwest and Canada, is one of the largest commercial animal nutrition businesses in North America, selling Hubbard feeds and Ridley supplements for livestock, equine and pets.
Alltech is on target to achieve $4 billion in sales in the next few years and this transaction will create a comprehensive animal nutrition company for North American and international farming, with global revenues in excess of $1.6 billion, according to Alltech.
Ridley has a strong on-farm presence and dealer distribution network in North America, while Alltech has international reach.
Ridley is publicly traded on the Toronto stock exchange but Alltech is privately held. The boards of directors of both companies unanimously approved the acquisition, according to a news release.
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.
"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 Pearse Lyons, founder and president of Alltech, in a statement. "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."
"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."
The two companies will have a presence in more than 128 countries, with a combined 4,200 employees and 77 production facilities.
Ridley will continue to be headquartered in Mankato, Minn., and senior management is expected to remain in place.
No layoffs are anticipated, according to the announcement.
This is the seventh acquisition by Alltech since 2011 and more purchases are possible.
"Alltech is a financially strong company and we continue to look for opportunities to acquire best-in-class companies with trusted technology and brand recognition," the company said.