November 12, 2015
Alltech to acquire Masterfeeds
Marking Alltech''s 14th acquisition since 2011, Alltech and Masterfeeds have entered into a share purchase, under which Alltech will acquire 100% of the outstanding shares of Masterfeeds, Inc., from Ag Processing Inc (AGP).
The combined company will have annual revenues in excess of US$2.1 billion, and Alltech will have complete ownership of Masterfeeds LP, a leading animal nutrition company in Canada. The combined entity will also have a presence in 128 countries with more than 4,700 employees worldwide. Both parties expect the acquisition to result in significant new synergies over time.
"This is a crucial time in agriculture, and Canadian farmers are facing ever-increasing pressures, including the continued drive to produce more with fewer resources," said Dr. Pearse Lyons, founder and president of Alltech. "Masterfeeds provides the on-farm support that is critical to Canada''s farmers and ranchers. This new opportunity will enable more efficient delivery of superior animal nutrition and tailored feeding programs, supported by robust scientific research."
Masterfeeds further strengthens Alltech''s presence in Canada by creating one of the country''s largest animal nutrition offerings. Alltech, Masterfeeds and EMF Nutrition, another Alltech-owned Canadian company, employ approximately 700 Canadians, operate 25 feed manufacturing and premix facilities, nine retail locations and seven distribution centres in a business spanning the entire country.
The acquisition is Alltech''s second one of a company headquartered in Canada, following that of EMF Nutrition in 2013.
"Alltech''s investment strategy is unfolding in exciting ways," commented Rob Flack, president and CEO of Masterfeeds. "Alltech''s primacy in science, supported by an extensive research and development program, is both cutting-edge and relevant. Masterfeeds'' proven on-farm feeding solutions will be strengthened through proprietary Alltech nutrition technology, adding further value to our customers throughout Canada."
"Masterfeeds and Alltech are two of the most respected brand names in Canadian animal agriculture," added Keith Spackler, CEO, Ag Processing Inc (AGP). "This acquisition is a significant development and is grounded in bringing the best nutrition solutions to farmers and ranchers."
Masterfeeds will continue to be headquartered in London, Ontario, Canada, and led by its current chief executive officer, Rob Flack. In addition, Alltech''s own entity, Alltech Canada, remains headquartered in Guelph, Ontario, serving the entire Canadian feed industry.
Completion of the acquisition is expected by year-end and is subject to the execution of typical conditions, including regulatory approvals.
Alltech has more than tripled its sales in the last three years and is on target to achieve US$4 billion in sales in the next few years. The acquisition is Alltech''s second one in North America this year, following that of Ridley Inc.