Ridley (ASX:RIC) is set to acquire Dyno Nobel's (ASX:DNL) fertilizer distribution business for AU$300 million, with the option to acquire its Geelong North Shore property for AU$75 million, according to a Monday filing with the Australian bourse.

The acquisition will be funded through new debt facilities, a AU$125 million equity raising through an entitlement offer, a AU$90 million pro rata accelerated, non-renounceable entitlement offer, a AU$35 million institutional placement, and a AU$50 million vendor note issue to Dyno Nobel, the filing said.

The company also secured supply from the holder of the contract with Perdaman Chemicals and Fertilizers of at least 700,000 tonnes of urea per annum post-commissioning of the Perdaman urea plant, expected by 2028, per the filing.