I'm guessing RM Williams was likely a 'why the hell not' investment for Twiggy. Lets bring the brand back to Australia, continue Australian manufacturing and maybe make a good return too. I would suggest it was as much an emotional investment as a strategic one. And with his bank balance he can easily do that.
I'd suggest RIC is strategic. I'd be thinking joint ventures first and foremost, but takeover offers can always be on the table. Ridley has plenty of cattle feed production and one of the larger if not the largest listed feed producer in Australia. (Let me know if you know any larger ones.) The rest of the market is full of smaller producers or vertically integrated supply chains like Inghams.
What RIC has is that has experienced the successes and failures pond feed farming and they likely have excess capacity for their Novacq needs. They also have the ruminant feedmills that can readily produce the necessary feed.
I'm going to accumulate based on this news alone.
RIC Price at posting:
94.0¢ Sentiment: Buy Disclosure: Held
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