LEXINGTON, Ky. (November 10, 2015) – Alltech will acquire 100 percent of the outstanding shares of Ontario-based Masterfeeds Inc., from Ag Processing Inc. This will provide Alltech complete ownership of Masterfeeds LP, a leading commercial animal nutrition company in Canada.
The deal is Alltech’s 14th acquisition since 2011 and will lift annual revenues past $2.1 billion, the company said.
Alltech has more than tripled sales in the last three years, the company said, and is on target to achieve $4 billion USD in sales in the next few years. Masterfeeds is Alltech’s second major acquisition in North America this year, following that of Ridley Inc. It is also Alltech’s second acquisition of a company headquartered in Canada, following the success in acquiring EMF Nutrition in 2013.
“This deal underscores our continued momentum in growing our business through strategic acquisitions of best-in-class companies with trusted technology and brand recognition,” said Steve Bourne, vice president of Alltech.
“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, operating 25 feed manufacturing and premix facilities, nine retail locations and seven distribution centers in a business spanning the entire country.
“Alltech’s investment strategy is unfolding in exciting ways,” stated 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,” said Keith Spackler, CEO, Ag Processing. “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 CEO Rob Flack. In addition, Alltech’s own entity, Alltech Canada, remains headquartered in Guelph, Ontario, serving the entire Canadian feed industry.
“I am confident that Masterfeeds’ future is bright under the ownership of Alltech. Our growth strategies will continue to be supported, creating opportunities both in Canada and abroad for our family of employees,” Flack said. “We are truly fortunate to become part of a financially strong, growth-oriented private company with a global vision.”
The combined company will 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.
Completion of the acquisition is expected by year-end and is subject to the execution of typical conditions, including regulatory approvals.
Headquartered in Nicholasville just south of Lexington, Alltech was founded in 1980 by Irish entrepreneur and scientist Dr. Pearse Lyons. It focuses on improving the health and performance of people, animals and plants through natural nutrition and innovative use of yeast fermentation, enzyme technology, algae and nutrigenomics. It has more than 4,200 team members and does business in 128 countries.
Alltech is the only privately held company among the top 10 animal health companies in the world. This is a source of competitive advantage, allowing Alltech to stay focused on customer needs, innovation and long-term objectives. The flexibility has also fueled Alltech’s growth, which has been approximately 20-25 percent annually. The acquisition of Masterfeeds will make Alltech a $2.1 billion company, keeping the organization on target to achieve $4 billion in sales in the next few years.
Headquartered in London, Ontario, 86-year-old Masterfeeds has been owned by a joint venture between Ag Processing, a cooperative based in Omaha, Neb., and Ridley Inc., based in Mankato, Minn., an Alltech company. AGP, which acquired Masterfeeds in 1991, is owned by 174 local cooperatives representing over 250,000 farmers throughout the United States and Canada.
Masterfeeds employs more than 500 people, operating 18 feed manufacturing and premix facilities and three retail stores throughout Alberta, Saskatchewan, Manitoba, Ontario and Quebec. The company markets its animal nutrition products and programs to farmers and ranchers directly and through an extensive 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.