Waterford-based Dawn Meats is set to acquire a controlling stake in New Zealand’s Alliance Group, a farmer-owned co-operative that describes itself as the world’s biggest exporter of sheep meat.
Subject to shareholder approval, Dawn Meats will pay $250 million New Zealand dollars (€128 million) to acquire a 65 per cent stake in Alliance.
Farmer-shareholders in the New Zealand group were informed of their board’s preferred option on Tuesday following a recapitalisation process.
The transaction is subject to New Zealand high court and regulatory approvals.
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If approved, proceeds from the transaction would be used to reduce Alliance’s short-term working capital facility by NZ$200 million, accelerate the board’s strategic capital expenditure programme and potentially enable the distribution of up to NZ$40 million to co-op members.
Dawn Meats chief executive Niall Browne said he was “pleased” to have secured the deal.
“As the largest retail packer of New Zealand lamb in the UK, Dawn Meats is familiar with the high standards of the country’s grass-fed meat industry and its produce,” he said.
“We have worked closely with Alliance for many years in this regard, and we greatly admire the exceptional quality of their world-class grass-fed lamb, beef and venison.
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“Dawn Meats has a successful operating and investment track record in Ireland, the UK and in the EU. Having the ability to 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 an opportunity we are deeply committed to and take very seriously.”
Alliance group chairman Mark Wynne said the announcement followed a two-year process to recapitalise the group. He described Dawn Meats’ bid as a “very compelling offer” that was unanimously endorsed by the co-op’s board.
“The process we have undertaken on behalf of our farmer-shareholders to meet our banks’ requirements means we are now a much fitter and stronger business,” he said. “However, we need this investment to provide certainty and confidence and ultimately unlock more value for our farmers.
“We are at a critical point where the business needs to evolve, but our commitment to farmers remains the same, and we believe Dawn Meats’ offer stands to secure and strengthen Alliance’s future.
“With Dawn Meats’ balance sheet power, strength in beef and market access across the UK and Europe, and Alliance’s strength in lamb and market access across Asia, China and North America, there are significant commercial and operational synergies at stake – with potential for our shareholders to see the value of their residual 35 per cent stake grow over the long term.”
The proposed transaction is to be implemented via a scheme of arrangement and will require acceptance by at least 75 per cent of shareholders voting at a special general meeting in Invercargill in New Zealand in mid-October, or by proxy.
If shareholders do not support the offer, the Alliance board said it would be “obligated” to enter a process led by its banking syndicate that may involve possible asset sales, further site closures and further cost-reduction initiatives.
Headquartered in Invercargill on South Island and owned by 4,216 farmer suppliers, Alliance began looking at recapitalisation options last year after racking up pretax losses of more than NZ$200 million in 2023 and 2024 and breaching its banking covenants.
Alliance is New Zealand’s third-largest meat exporter, with revenues last year of NZ$1.77 billion, down from NZ$2.03 billion in 2023. It has a network of eight processing plants, including three beef plants.
Other bidders for the business are believed to have included rival New Zealand meat exporters and the Saudi Public Investment Fund-owned Salic.
