Farmer-shareholders of Alliance Group have approved a significant deal, enabling Irish processor Dawn Meats to acquire a majority stake in the New Zealand co-op.
Dawn Meats will invest NZ$270 million (approximately $154.4 million) to secure a 65% share in the business, while Alliance Group’s farmer-members will maintain a 35% shareholding.
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A total of 2,675 shareholders participated in the vote, representing over 88% of the company’s issued shares. Remarkably, more than 87% approved the proposal.
In August, Dawn Meats had initially aimed to acquire a 65% stake in the meat cooperative for NZ$250 million. However, last week, the company enhanced its offer under a previously agreed adjustment mechanism.
It was agreed that if Alliance Group meets its full-year profit and debt targets, Dawn Meats would pay an additional NZ$20-25 million.
Mark Wynne, chair of Alliance Group, stated: “This investment strengthens our financial position, enhances operational capability and ensures continued farmer ownership.”
The company indicated that the funding will help reduce debt, accelerate capital programs, and facilitate future distributions to farmer-shareholders.
Niall Browne, CEO of Dawn Meats, emphasized, “By bringing together our complementary strengths, we’ll create a globally competitive business with enduring benefits for farmers, customers, and consumers.”
Approximately NZ$200 million of the proceeds is designated for repaying Alliance’s short-term working capital facility. The rest will expedite capital expenditure plans.
Farmer-shareholders are set to receive distributions totaling up to NZ$20 million within the current and next financial years.
Alliance Group, comprising around 4,300 shareholders, reported revenues of NZ$1.8 billion in 2024. However, it faced a loss after tax totaling NZ$95.8 million.
Following Alliance Group’s annual general meeting in December, the co-op noted it had “turned a corner on a challenging two years,” predicting a return to profitability.
Wynne added: “Alliance has taken decisive steps to re-set the business and position the company for future success after a tough period for the global red meat sector, particularly for lamb, our largest product group.”
Alliance Group Shareholders Greenlight Dawn Meats Acquisition
