One of Australia’s leading animal nutrients suppliers, Ridley Corporation, has announced it will acquire BPL, Victoria’s largest red meat and poultry renderer for AU$77m.
The transaction marks Ridley’s entry into the Victorian rendering sector as part of the company’s strategy to secure strategic feed ingredients by acquiring successful businesses in the field.
Ridley’s managing director and CEO, John Murray, said: “The business has a close fit with Ridley’s broader animal feed operations and is consistent with our strategy of securing the supply chain for the key raw materials and ingredients which fulfil an essential role in the provision of nutrition for livestock.”
The business is being sold by the Baiada poultry group, the largest customer of the Ridley poultry business. As part of the acquisition, raw material supply agreements between Ridley and Baiada have been agreed.
BPL plays a major role in providing essential ingredients for a variety of uses, including meat and bone meal used for stockfeed, fertiliser products, pet food, as well as pharmaceuticals and other chemicals.
The business has a total capacity to process around 240kt per annum and generates an annual turnover in excess of AU$70m. With a purchase consideration of AU$77 million, BPL is expected to achieve low-double-digit earnings per share accretion in the first full year of ownership.
The acquisition of BPL is subject to a number of conditions to completion, with a target completion date of December 31.