Ridley Corporation Limited is set to acquire New Zealand-based Oceania Meat Processors (OMP) for $52.8 million.
OMP is a premium producer of mechanically deboned meat frozen block products (MDM Products) and other raw materials for the global pet food industry. The business produces multi-species products, including lamb, beef, venison, veal, and other ingredients, which are supplied through established supply chains to domestic and international customers.
Approximately two-thirds of its products are produced at its operations in Melbourne, adjacent to Ridley’s existing ingredient recovery facility in Laverton, and one-third at its operations in Timaru, New Zealand.
Quinton Hildebrand, Managing Director and CEO of Ridley, said they are extremely excited about the opportunities this acquisition provides to Ridley, their suppliers, and customers, and look forward to the team at OMP joining the Ridley business.
“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 capacity to service the domestic and international pet food industry.”
The acquisition price represents a multiple of 5.4 times EBITDA (LTM as of September 2023). The acquisition will be fully funded by debt facilities and is expected to be EPS-accretive in the first year post-transaction.
Key management personnel will be secured as part of the transaction. Completion is expected to occur on 28 March 2024, subject to certain conditions.