Ricegrowers Limited (ASX:SGLLV) signed a purchase agreement to acquire the NZ dairy nutrition business of Inghams Group Limited (ASX:ING) for NZD 11.5 million on December 18, 2020. The consideration is subject to standard completion adjustments. The acquisition includes Ingham's' feed mill at Hamilton, and direct-to-farm and packaged dairy business in New Zealand under the ‘Top Cow' and ‘Top Calf' brands.

The purchase price will be funded from existing cash reserves and available debt facilities. NZ dairy nutrition business generated unaudited revenue of NZD 25 million in the full year ended June 27, 2020. The deal is pending satisfaction of a number of standard conditions precedent.

The deal is expected to complete by March 31, 2021. The transaction is not expected to have a material impact on earnings in FY2021. The acquisition is expected to be earnings per share accretive.

Ernst & Young Australia acted as accountant to Ricegrowers Limited (ASX:SGLLV).