NZ Dairy Giant Sells North Island Assets for $307M Cash
Source: dairynews.today
Synlait Milk is offloading its North Island assets, including the Pōkeno plant, to U.S. firm Abbott to cut debt and sharpen focus on Canterbury operations.
Synlait Milk, a key player in the dairy sector, has announced the sale of its North Island assets for $307 million to U.S.-based Abbott. This strategic move aims to reduce debt and concentrate on more profitable operations in Canterbury, New Zealand. The transaction includes the Pōkeno manufacturing facility, assets from its Auckland blending and canning facility, and associated inventory.
The asset sale aligns with Synlait's financial recovery plan, evident from its shift from a $39.8 million statutory loss after tax to a modest $0.8 million profit. Synlait's chairman, George Adams, endorsed this deal for bolstering financial standing, with the transaction expected to complete by April 1, 2026. Abbott has also pledged to retain most staff from the acquired sites, ensuring operational stability. Synlait's majority shareholder, Bright Dairy Holding, has given preliminary support, predicting likely approval at the next shareholder meeting.
The asset sale aligns with Synlait's financial recovery plan, evident from its shift from a $39.8 million statutory loss after tax to a modest $0.8 million profit. Synlait's chairman, George Adams, endorsed this deal for bolstering financial standing, with the transaction expected to complete by April 1, 2026. Abbott has also pledged to retain most staff from the acquired sites, ensuring operational stability. Synlait's majority shareholder, Bright Dairy Holding, has given preliminary support, predicting likely approval at the next shareholder meeting.
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