Ridley Corporation to acquire Oceania Meat Processors for NZ$ 57 million

SYDNEY, AUSTRALIA: Ridley Corporation announced that its wholly owned subsidiaries CSF Australia Subsidiary and CSF Protein NZ Limited have entered into an agreement to acquire Oceania Meat Processors NZ LP for NZ$57.0 million.

Oceania Meat Processors (OMP) is a premium producer of mechanically deboned meat frozen block products (MDM Products) and other raw materials for the global pet food industry.

MDM Products are a key pillar of Ridley’s Ingredient Recovery growth strategy and OMP is expected to make a meaningful contribution to this business segment and enhances Ridley’s offering to suppliers and pet food customers.

Established in 2002, OMP is a leading supplier of premium inputs to the global pet food industry with approximately two-thirds produced at its operations in Melbourne, Australia (adjacent to Ridley’s existing Ingredient Recovery fadlity in Laverton) and one-third at its operations in Timaru, New Zealand.

The business produces multi species products, including lamb, beef, venison, and veal, and other ingredients which are supplied through established supply chains to domestic and international customers. Key management personnel will be secured as part of the transaction.

The acquisition price represents a multiple of 5.4 times EBITDA (LTM as at September 2023). Completion is expected to occur on 28 March 2024, subject to certain conditions. The acquisition will be fully funded from debt facilities and is expected to be EPS accretive in the first year post transaction.

Ridley’s Managing Director and Chief Executive Officer, Quinton Hildebrand, said, “The acquisition of OMP represents a key milestone for Ridley’s Ingredient Recovery business in the delivery of its FY23-25 growth plan – providing a meaningful contribution to Ridley’s ambition to “climb the wall of value” by producing bespoke, higher value nutrients from existing and new raw material suppliers.

The acquisition also significantly increases Ridley’s capadty to service the domestic and intemational pet food industry.

We are extremely excited about the opportunities this acquisition provides to Ridley, our suppliers and customers, and look forward to the team at OMP joining the Ridley business.”

OMP is a company that produces and supplies frozen meat products and other raw materials for the pet food industry. It has grown rapidly since 2002 and has expanded into Australia, North America, and other countries. It sources its products from high quality suppliers in Australia and New Zealand, and delivers them to customers within three days.

OMP helps Ridley, a pet food company, to increase its value by producing frozen meat products that are in demand by the global market. OMP also has long-term relationships with blue-chip pet food customers that Ridley can leverage. The acquisition of OMP will benefit Ridley by optimizing its raw materials and increasing its earnings per share.

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