Ridley Corporation Ltd. (ASX: RIC) announced the acquisition agreement with Oceania Meat Processors NZ LP (OMP) for NZ$57.0 million (AU$52.8 million) through its subsidiaries. OMP specializes in producing mechanically deboned meat frozen block products (MDM Products) and other raw materials for the global pet food industry. This strategic move aligns with Ridley's Ingredient Recovery growth strategy, with OMP anticipated to significantly bolster this segment and augment Ridley's offerings to suppliers and pet food clients.
Founded in 2002, OMP operates mainly in Melbourne, Australia (adjacent to Ridley’s existing facility) and Timaru, New Zealand, supplying various animal products to both local and global customers. The purchase price, 5.4 times EBITDA (LTM as of September 2023), will be financed through debt facilities, expecting completion by March 28, 2024, subject to specific conditions. Ridley foresees this acquisition as positively impacting earnings per share (EPS) within the first year following the transaction. Additionally, key management personnel will be retained as part of the acquisition.
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Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
