-- Creates Comprehensive Animal Nutrition Offering for North
American and International Farming
-- Combined Company to be a Global Leader in Animal Health
and Nutrition with Annual
Revenues in Excess of USD $1.6
Billion
-- Allows Alltech to Deliver Greater Performance and Value to
Farms around the World with
Industry's Most Advanced Animal Nutrition Products and
Solutions
-- Accelerated Product Innovation from Combined Technology,
Research and Data Analytics
LEXINGTON, Kentucky and
MANKATO, Minnesota, April 23, 2015 /PRNewswire/ -- Alltech and Ridley
Inc. (TSX: RCL) ("Ridley") announced today 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, 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% 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.
"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 Alltech. "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 combination creates a new model to deliver
superior animal nutrition and tailored feeding programs supported
by robust scientific research and data analytics. 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," 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."
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.
Both companies are industry leaders committed to investing in
sustainable nutrition solutions and advanced feeding programs that
optimize physical and financial performance on farms, leading to
increased efficiency and value. Alltech spends approximately 10
percent of its gross revenue on R&D, more than any other
company in the industry. Ridley has a strong technical team with
over 40 advanced degree staff who have produced some of the
industry's best-selling and most widely-recognized blocks and
nutrition supplements and will now be working side-by-side with
Alltech's team of approximately 150 Ph.D.s. This deal will further
enhance Alltech's primacy in science and allow it to deliver this
to a broader range of livestock and poultry producers in the U.S.
and bring more advanced animal nutrition solutions to countries
across the globe.
Improved animal nutrition is a pressing need for the
productivity of the world's livestock and food chain. Feed costs
comprise the majority of livestock production costs. By improving
nutrition, livestock and poultry producers are able to realize a
significant increase in efficiencies and return on investment.
Alltech's continued commitment to tailoring nutrition and health
programs with a focus on natural, antibiotic-free ingredients
allows livestock and poultry producers to raise healthier animals
through a process that is better for animals, consumers and the
environment.
The combined company will have a presence in over 128 countries
and 4,200 employees worldwide. Alltech has more than doubled its
sales in the last three years and is on target to achieve USD
$4 billion in sales in the next few
years.
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.
Alltech has established a track record of successful
acquisitions, having completed seven since 2011.
About Alltech
Founded in 1980 by Dr. Pearse Lyons, Alltech improves the health and
performance of people, animals and plants through natural nutrition
and scientific innovation. With more than 3,500 employees and a
presence in 128 countries, the company has developed a strong
regional presence in Europe,
North America, Latin America, the Middle East, Africa and Asia.
Alltech improves health and performance by adding nutritional
value naturally through its innovative use of yeast fermentation,
enzyme technology, algae and nutrigenomics. Its pursuit of this
mission is guided by its founding ACE principle, a promise that in
doing business the company has a positive impact on the Animal, the
Consumer and the Environment. Alltech's solutions are entirely
antibiotic free.
Alltech is the only privately held company among the top 10
animal health companies in the world. This is a source of
competitive advantage, allowing Alltech to stay focused on customer
needs, innovation and long-term objectives. The flexibility has
also fueled Alltech's growth, which has been approximately 20-25
percent annually. Alltech has achieved USD $1 billion in sales and is on target to achieve
USD $4 billion in sales in the next
few years.
For more information, visit www.alltech.com.
About Ridley Inc.
Ridley Inc., headquartered in Mankato,
Minnesota, is one of the leading animal nutrition companies
in North America, serving
customers mainly in the United
States and Canada. Ridley
employs more than 700 people in the manufacture, sales and
marketing of a full range of animal nutrition products under highly
regarded trade names. Ridley's common shares are listed on The
Toronto Stock Exchange (trading symbol: RCL). For more information,
visit www.ridleyinc.com.
Press Contacts
For Alltech:
Susanna Elliott
suelliott@alltech.com
+1 859 473 2696
or
Christopher Mittendorf
christopher.mittendorf@edelman.com
+1 212 704 8134
For Ridley Inc.:
Steve VanRoekel
Steve.VanRoekel@ridleyfeedingredients.com
+1 507 388 9400
or
Tyson Twait
Tyson.Twait@ridleyfeedingredients.com
+1 507 388 9400