Dawn Meats has confirmed its intention to acquire a majority stake in New Zealand’s Alliance Group, pending approval from the cooperative’s shareholders.
The Ireland-based meat processor, Dawn Meats, will invest NZ$250m ($150m) for a 65% interest in Alliance Group under terms that differ slightly from prior media reports.
This transaction values Alliance Group at NZ$502m on an enterprise basis. However, it remains subject to shareholder approval at a meeting scheduled for mid-October, along with the nod from the New Zealand High Court and competition regulators, as noted in a joint statement.
Alliance Group stated that at least 75% of voting shareholders must accept the deal for it to proceed.
The cooperative cautioned that if shareholders reject this proposed investment, characterized as a “strategic partnership” with Dawn Meats, the board may have to explore “possible asset sales, site closures, and further cost-reduction initiatives.”
Alliance Group chair, Mark Wynne, explained that this deal follows an extensive two-year effort to reset and recapitalize the business.
Owned by approximately 4,300 shareholders, Alliance Group generated revenue of NZ$1.8bn in 2024 but reported a loss after tax amounting to NZ$95.8m.
In a December statement following the annual general meeting, the co-op indicated it had “turned a corner on a challenging two years” after a comprehensive reset, with forecasts pointing towards a return to profitability.
Wynne further remarked, “Alliance has taken decisive steps to reset the business and position the company for future success after a tough period for the global red meat sector, particularly for lamb, which constitutes our largest product segment.”
In its recent statement (12 August), Alliance Group confirmed it would utilize the proceeds to reduce its short-term working capital facility by approximately NZ$200m.
Furthermore, these funds will facilitate the acceleration of the board’s strategic capital expenditure program and enable the distribution of up to NZ$40m to shareholders.
Wynne noted that this recapitalization “means we are now a much fitter and stronger business,” stressing the necessity of this investment to provide certainty, boost confidence, and ultimately unlock greater value for the farmers.
County Waterford-based Dawn Meats, operating as Dunbia in the UK, is a family-owned processor of lamb and beef with an annual turnover of €3bn ($3.4bn), as stated on its website. The company manages 11 facilities in Ireland and 13 in the UK, servicing both retail and foodservice channels, similar to Alliance Group.
Wynne concluded, “With Dawn Meats’ balance sheet power, strength in beef, and market access across the United Kingdom and Europe, alongside Alliance Group’s strengths in lamb and market access throughout China, wider Asia, and North America, there are substantial commercial and operational synergies at stake.”
The New Zealand cooperative claims to be the country’s “largest” processor and exporter of sheep meat and a “key producer” of premium, pasture-fed beef. It operates six processing plants and exports to over 65 countries.
Niall Browne, CEO of Dawn Meats, asserted, “Having the ability to grow in partnership with some of New Zealand’s leading farmers and create year-round supply for our customers between the Northern and Southern Hemispheres is an opportunity we are deeply committed to and take very seriously.”
