Nicholasville-based Alltech announced Thursday it has reached an agreement acquire Canadian animal nutrition firm Ridley Inc. in a deal that would create a company with $1.6 billion in combined revenue.
Alltech spokeswoman Susanna Elliott said Ridley’s board of directors agree to plan to allow Alltech to buy all outstanding Ridley stock for about $521 million, or $40.75 per share. The deal is expected to be complete by the end of June.
“This deal underscores our continued momentum in growing our business through strategic acquisitions of best-in-class companies with trusted technology and brand recognition,” Alltech CEO Pearse Lyons said in a statement.
Elliott said the combine company would boost Alltech’s North American reach. She said the number of Alltech employees would grow from 3,500 to 4,200 and the number of production facilities would jump from 48 to 77.
Elliott said the merger also would raise the profile on Alltech’s antiobiotic-free technologies.
“As many food industry companies are moving to antibiotic-free production, we are powering that through this move today,” she said.