MELBOURNE, AUSTRALIA — Subsidiaries of Ridley Corporation Limited, an Australian manufacturer in the animal nutrition space, have entered into an agreement with Oceania Meat Processors (OMP), a producer of frozen meat blocks and other raw pet food materials, to acquire the company. The transaction is valued at 5.4-times OMP’s EBITDA as of September 2023.
According to Ridley, mechanically deboned frozen meat blocks are a crucial part of its growth strategy in the pet food sector. OMP’s capabilities and expertise in this area are expected to bolster Ridley’s offerings to the global pet food market, including expanding its raw material scope, premium ingredient capabilities, and adding novel proteins to the menu.
“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,” said Quinton Hildebrand, managing director and chief executive officer at Ridley. “The acquisition also significantly increases Ridley’s capacity to service the domestic and international pet food industry. We are extremely excited about the opportunities this acquisition provides to Ridley, our suppliers and customers, and look forward to the team at OMP joining the Ridley business.”
Established in 2002, OMP produces multi-species products spanning lamb, beef, venison and veal proteins, as well as other ingredients. The company sources raw materials domestically and internationally. Two-thirds of its operations are rooted in Melbourne, not far from Ridley’s Ingredient Recovery plant in Laverton, and the remaining one-third of OMP’s operations are based in Timaru, New Zealand.
Ridley specializes in frozen block products, freeze-dried products, protein concentrate meals, low-ash meals, and various grades of tallow and oils.
The deal is expected to close on March 28, 2024, subject to closing conditions.
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