- The ACCC approves the unconditional sale of Ridley Corporation’s (RIC) Westbury extrusion facility in Tasmania
- RIC announced the $54.85 million sale to Gibson’s Limited, trading as Skretting Australia, back in May — subject to a review by the ACCC
- The sale has now been approved as unconditional and is expected to complete by the end of the month, generating a pre-tax profit of $7 million
- Ridley is focusing on the aquafeed market and will continue supplying customers through its expanded Narangba facility in Queensland
- Shares are trading 0.92 per cent higher at $1.10 each at 3:20 pm AEST
The unconditional sale of Ridley’s (RIC) Westbury extrusion facility in Tasmania has been approved following a review by the Australian Competition and Consumer Commission (ACCC).
Based in Victoria, Ridley provides Australia’s farming industry with animal nutrition solutions, including feeds and supplements for livestock.
Back in May, the company announced its wholly owned subsidiary, Ridley Agriproducts, had agreed to sell the underutilised Westbury facility to Gibson’s Limited, trading as Skretting Australia, for $54.85 million.
The sale, however, was subject to a review by the ACCC. The review has since been completed and the sale has received unconditional approval.
Following the go-ahead, RIC expects the divestment will enable the reset of its manufacturing cost base to better service the aquafeed market.
Ridley Managing Director and CEO Quinton Hildebrand said the company would continue to supply customers through its upgraded Queensland operation, which is due for completion this month.
“This allows us to proceed with the plan to consolidate our aquaculture feed production into the expanded Narangba, Queensland, extrusion facility — providing a more competitive and lower cost supply chain to service the Australian and New Zealand aquaculture industry, including our Tasmanian customers,” he said.
The sale will result in a pre-tax profit to the tune of $7 million. The transaction will also lower ongoing manufacturing costs for Ridley’s aquafeed business unit.
The company expects the sale to be completed before the end of July.
Shares in Ridley were trading 0.92 per cent higher at $1.10 each at 3:20 pm AEST.