“The opportunity to acquire Masterfeeds came about through Alltech’s acquisition of Ridley in June,” a spokesperson for the Kentucky based firm told us. “Ridley had a 30% shareholding of Masterfeeds, which Alltech obtained through the acquisition, and Alltech was provided with an opportunity to purchase all remaining shares this year.”
Financial details of the acquisition have not been released.
The spokesperson said the Canadian firm has been a past partner of Alltech and the acquisition was the “next step” in the relationship between the two companies.
“CEO Rob Flack and his team have built Masterfeeds into a very strong and trusted brand among Canadian farmers and ranchers,” she continued. “Its presence throughout Canada, brand recognition, extensive dealer network, on-farm presence and talented team are attractive to Alltech. “
Opportunities created by the acquisition are anticipated to cover crop sciences, livestock operations along with pet and equine nutrition and health, said the spokesperson.
“We know there are many synergies for the two companies - these will be further explored and we expect to identify new opportunities when the integration process begins,” she added.
The acquisition, which is subject to the normal regulatory process, is expected to be finalized by the end of December.
Business will continue for current company customers, the spokesperson said. “They can, however, expect even more local support and increased variety of technology in the coming years,” she added.
Masterfeeds is to retain its current headquarters in London, Ontario and CEO Rob Flack will remain.
North American deals
This is second acquisition Alltech has made in North American in the past year.
It purchased Minnesota-based animal nutrition group, Ridley, in April 2015. The latest deal also marks the second purchase of a Canadian company, following Alltech’s buy out of EMF Nutrition in 2013.
“Alltech, Masterfeeds and EMF Nutrition employ nearly 700 Canadians and operate 25 manufacturing facilities, nine retail locations and five distribution centers in a business spanning the entire country,” said the spokesperson.