MELBOURNE, AUSTRALIA — Ridley Corporation Ltd. said on April 15 that its wholly owned subsidiary, Ridley Agriproducts Pty Ltd., has agreed to sell the Wasleys Feedmill in South Australia to Baiada, one of the country’s leading poultry producers, for A$22 million ($14 million). The sale is expected to be completed on June 30.

Quinton Hildebrand, managing director and chief executive officer of Ridley, said the deal was a win for both parties.

“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,” he said. “The sale represents a fair price for the Wasleys Feedmill and the proceeds will further strengthen the Ridley balance sheet and support our growth ambitions.”

The Wasleys Feedmill delivered an EBITDA of A$3.5 million in the past 12 months, with over 90% of the volume sold to Baiada. The sale will deliver a pre-tax profit which, after 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 A$4 million EBITDA for fiscal year 2025, the company said.

Ridley said the business reset is on track to deliver the targeted annual cost savings of A$5 million EBITDA for fiscal year 2026 and beyond, helping to offset the reduced earnings after the sale of the feed mill.

Ridley noted that trading conditions in the first half of this fiscal year are being affected by lower selling prices in the Ingredient Recovery business, particularly with avian influenza-related export market restrictions on poultry meals and oils, and a one-off impact of lower Packaged Product sales volumes related to the recent weather events in Queensland.

Wasleys was Ridley’s only remaining feed mill in South Australia after the company closed its Murray Bridge site in 2019 due to sustained losses.