Dawn Meats has completed a significant transaction, acquiring a 65% stake in Alliance Group, while the farmer-shareholders will retain a 35% shareholding in the business. This strategic partnership marks a transformative phase in food manufacturing.
The agreement, reached in October, came after the farmer-shareholders of Alliance Group voted overwhelmingly in favor of a proposed NZ$270 million (£115.8 million) collaboration. Such a partnership will enable enhanced efficiencies and innovations in the sector.
Now that the transaction is finalized, around NZ$188 million of the investment proceeds will be allocated to reducing Alliance’s short-term working capital facility. Additionally, NZ$20 million will be directed toward the company’s strategic capital program to improve overall performance.
Niall Browne, chief executive of Dawn Meats, stated: “This joint partnership will unlock new and exciting opportunities for both companies and our farmer-suppliers in New Zealand, Ireland, and the UK. This investment expands our business significantly and positions us, our UK company Dunbia, and Alliance Group as a unified and dynamic industry competitor with a substantial presence and customer base in both the Northern and Southern hemispheres.”
He emphasized that the company aims to maximize its “new combined strength” to ensure existing and potential customers have a sustainable, year-round supply of world-class, grass-fed red meat. This reflects a commitment to quality and sustainability in food manufacturing.
Browne confirmed that the strategic partnership will encourage collaboration between Dawn Meats and Alliance, focusing on capital upgrades, technological advancements, and the adoption of sustainable business practices.
“Throughout the process of securing this strategic partnership, Dawn Meats was clear about the potential benefits of combining our knowledge and experience with that of Alliance and its farmer-shareholders. Alliance is a leading New Zealand business with a proud legacy of cutting-edge processing and a history of exporting the highest-quality grass-fed lamb, beef, and venison,” Browne remarked.
Willie Wiese, chief executive of Alliance Group, noted that the completion of this transaction marks a crucial milestone. “We can move from planning to implementation with a partner that brings scale, global reach, and expertise that clearly creates a competitive advantage. This marks the start of an exciting new chapter for Alliance, one that is centered on value creation for our farmer-shareholders,” he stated.
“This investment provides the capital we need to strengthen our balance sheet, accelerate value growth initiatives, and further enable the delivery of our strategic objectives. Importantly, it also maintains meaningful farmer ownership and influence through a strong 35% holding and robust governance arrangements.”
Furthermore, farmer-shareholders will benefit from a distribution of up to NZ$20 million in the current financial year (FY25/26) and an additional NZ$20 million in the following financial year (FY26/27).
In FY25/26, 45% of the distribution will be allocated as dividends and 55% as a supply-based rebate. Conversely, in FY26/27, 75% will be provided as a rebate, while 25% will be retained as earnings.
Additionally, up to NZ$26 million will be distributed as a special dividend from the joint venture to the new Alliance Investment Co-operative, following a stronger-than-expected year-end result for Alliance.
