Dawn Meats is set to acquire a 65% shareholding in Alliance Group, allowing farmer shareholders to maintain a 35% stake. This strategic partnership signals a significant advancement in food manufacturing in New Zealand.
The agreement follows a favorable vote by Alliance Group’s farmer-shareholders, who approved the proposed NZ$270 million (£115.8 million) partnership. Notably, over 87% of those who voted were in support, surpassing the threshold required under the Takeovers Code.
Niall Browne, Chief Executive of Dawn Meats, stated: “We are pleased and excited by the outcome of the vote by Alliance’s farmer-shareholders and we now look forward to maximising the potential of the new opportunities this strategic partnership will unlock in the future for both Dawn Meats and Alliance.”
He further remarked, “Following an extensive engagement and due diligence process, Dawn Meats put forward a strong strategic partnership proposal involving a significant investment in a world-class company that shares our values, ambition and commitment. I would like to thank Alliance’s farmer-shareholders for carefully considering our offer over the last two months and supporting it to such an extent.”
Browne emphasized that this joint venture with Alliance is poised to enhance growth and development within New Zealand’s food manufacturing sector, especially in exporting premium quality grass-fed lamb, beef, and venison.
“Dawn Meats already has a strong operations network in Ireland, the UK, and the EU. Having the ability to now grow in partnership with some of New Zealand’s leading farmers and create a year-round supply for our customers between the Northern and Southern Hemispheres is a fantastic opportunity and one our customers are already responding to,” he explained.
Mark Wynne, Chair of Alliance Group, remarked that this outcome reflects strong farmer confidence in the company’s future direction.
“We’re really excited about the potential for this partnership and what the future holds for Alliance and Dawn,” he stated.
“This essential investment will strengthen our financial position, enhance our operational capability and enable us to capture more value in market for our farmers and the country. Importantly, the agreement also preserves farmer ownership, with a continuing 35 per cent shareholding and strong governance rights.”
He added that this positive outcome resulted from a comprehensive two-year process aimed at resetting and recapitalizing the business.
