Animal nutrition company Alltech is to acquire US-based Ridley in a move the companies say will create a new model to deliver products and tailored feeding programmes.

The plan announced today will see Alltech take 100 per cent of Ridley’s stock for CAD $40.75 (€31.02) per share, the total consideration payable to Ridley shareholders amounting to about CAD $521 million (€397 million).

Dr Pearse Lyons, founder and president of Alltech said the move would combine the two industry leaders allowing his company deliver "better performance and value to livestock and poultry producers across the globe."

“With Ridley’s leading animal nutrition supplements, block products, extensive livestock and poultry producer distribution network and on-farm presence, we will be able to bring our advanced nutrition technology to market faster and more effectively,” he said.

Alltech was founded in 1980 and describes its business as improving the health and performance of people, animals and plants through natural nutrition and scientific innovation. It employs over 3,500 people in 128 countries.

Ridely, which is listed on the Toronto stock exchange, employs more than 700 people and is a leading player in the animal nutrition sector in North America.

Steven VanRoekel, Ridley chief executive, said the combination is aimed at bringing “nutrition solutions” to meat, milk and egg producers globally.

The combined company will have a presence in over 128 countries and 4,200 employees worldwide.

Alltech has more than doubled its sales in the last three years and is on target to achieve USD $4 billion in sales in the next few years, it said in a statement.