Ridley Corp. Ltd. will sell its Wasleys feed mill in South Australia to Baiada Group for AUD22 million (US$14 million). The transaction is expected to be completed by June 30.
“We understand Baiada’s desire to own the feed mill as part of their expansion plans in South Australia, and Ridley looks forward to ongoing supply arrangements with Baiada in other regions,” said Ridley Managing Director and CEO Quinton Hildebrand. “The sale represents a fair price for the Wasleys feed mill and the proceeds will further strengthen the Ridley balance sheet and support our growth ambitions.”
The Wasleys feed mill delivered an EBITDA of AUD3.5 million in the past 12 months, with more than 90% of the volume sold to Baiada. The sale will deliver a pre-tax profit which, net of transaction costs and other costs (including the one-off restructuring costs announced in February for the business reset), is expected to result in a reported gain from net individually significant items of approximately AUD4 million EBITDA for fiscal 2025.
The business reset is on track to deliver the targeted annual cost savings of AUD5 million EBITDA for fiscal 2026 onward, helping to offset the reduced earnings post the sale of Wasleys.
According to Feed Strategy’s Top Feed Companies database, Ridley AgriProducts is a major feed supplier for Australian food producers in the dairy, poultry, pig, aquaculture, sheep and beef industries. The company also produces feed for laboratory animals, and for horses and dogs in the recreational sector. Some of the brands of the company are Barastoc, Cobber, Rumevite and Primo.
In 2023, Ridley produced 2 million metric tons of feed at its 20 feed mills.
