Masterfeeds, a London, Ont.-based livestock feed company with 18 manufacturing and processing facilities in Canada, has been purchased by an American firm.
Alltech, a privately held animal health company, is based in Lexington, Kentucky, and conducts business in 128 countries.
The deal involves Alltech’s purchase of all Masterfeeds’ outstanding shares from U.S.-based Ag Processing Inc., so Masterfeeds will become wholly owned by Alltech.
The combined company will have annual revenues in excess of $2.1 billion, according to a news release issued today.
Financial details of the share purchase transaction were not disclosed.
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Alltech has been in expansion mode, and Masterfeeds is its 14th acquisition since 2011. It also purchased Ridley Inc. earlier this year and bought EMF Nutrition in 2013.
At the time of this deal, Masterfeeds was owned by Ag Processing Inc. (AGP) of Omaha, Nebraska, and Ridley Inc., based in Mankato, Minnesota, in a joint venture.
Masterfeeds has more than 500 employees in its feed plants, pre-mix operations and three retail stores. It has facilities in Alberta, Saskatchewan, Manitoba, Ontario and Quebec.
It markets directly to farmers and also through a dealer network.
“Over the last 22 years, Masterfeeds has tripled in size. Through strategic acquisitions and most recently merging with Ridley Canada (Feed-Rite), Masterfeeds has become a leading feed manufacturer in Canada,” said the news release.
Its facilities combined with those owned by Alltech will bring the latter companies’ holdings to include 25 feed manufacturing and pre-mix plants, nine retail stores and seven distribution centres.
The news release said Masterfeeds will continue to be based in Ontario with chief executive officer Rob Flack remaining at its helm. Alltech Canada has its headquarters in Guelph, Ont.
The acquisition is expected to be complete by the end of 2015.
Contact barb.glen@producer.com
