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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