Sydney, May 2025 – Ridley Corporation Limited (ASX: RIC), a leading player in animal nutrition and agricultural inputs, has announced a fully underwritten entitlement offer to raise approximately A$125 million. The proceeds will fund the strategic acquisition of Dyno Nobel’s fertiliser distribution business, marking a major expansion in Ridley’s agri-sector footprint.
The acquisition is expected to significantly enhance Ridley’s vertical integration, enabling the company to offer end-to-end solutions across both animal feed and crop nutrition segments.
đź“ Structure of the Capital Raise
- Pro rata accelerated non-renounceable entitlement offer for eligible shareholders
- Additional funds raised through a placement to institutional investors
- Total offer size: ~A$125 million
“This acquisition aligns with our long-term strategy to become a more diversified agricultural inputs leader,” said a Ridley executive.
🌿 Strategic Rationale for the Acquisition
With this move, Ridley is aiming to:
- Expand distribution capabilities in rural and regional Australia
- Strengthen its agricultural supply chain footprint
- Offer bundled nutrition and fertiliser solutions to livestock and crop producers
- Capitalize on synergies across its animal feed and fertiliser portfolio
This is a particularly relevant development for integrated farm operations, including dairy farms, which increasingly demand nutrient-aligned feed and soil inputs for improved productivity.
đź“Š Market Response and Analyst Outlook
- Analyst rating: Buy
- 12-month target price: A$2.65
- Market Cap: A$846.4 million
- YTD performance: +2.25%
- Technical sentiment: Strong Buy
Industry analysts expect this acquisition to improve Ridley’s profitability margins and distribution reach, particularly in high-growth rural markets.
đź„ Relevance to Dairy and Livestock Sector
For dairy producers, especially in Australia and export-driven regions, this move could result in:
- More integrated feed-to-field solutions
- Improved access to nutrient-rich and performance-oriented feed formulations
- Enhanced supply chain security amid global input price volatility
As the line between animal and soil nutrition continues to blur, Ridley’s dual-sector focus could give it a strategic edge in addressing farm-level efficiency and sustainability.
