Alltech of Lexington, Kentucky, is bidding $40.75 per share to buy Ridley, one of Canada’s biggest feed-making companies.
The bid, which totals $521 million, compares with a Toronto stock exchange share price of $33.94.
The deal has court approval under Manitoba’s Corporations Act and is due to close this summer if federal regulators and Ridley shareholders approve.
Fairfax Financial Holdings of Toronto, which owns about 78 per cent of Ridley, has already made a deal committing its shares and its vote to the Alltech offer.
Ridley’s board has also approved the deal and recommended that minority stakeholders support it. A circular explaining the deal is to be mailed to those shareholders next month.
Ridley markets under the Feed-Rite name. It also formed a partnership with Masterfeeds, blending that company's strong presence in Ontario and Quebec with Ridley's focus in Manitoba.
Alltech has emerged as a major global competitor by focusing on probiotics and prebiotics.