Waterford-based Dawn Meats completes majority acquisition of New Zealand's Alliance Group
Dawn Meats Chief Executive Niall Brown
Waterford-based red meat processing company Dawn Meats has completed the majority acquisition of New Zealand’s largest sheep meat exporter, Alliance Group.
Dawn Meats’ 65% stake in the Kiwi cooperative will cost roughly €132 million and allow Dawn Meats to sell sheep meat across the entire calendar year.
Approximately €92 million of the investment will go towards reducing Alliance’s short-term working capital facility, with a further €10 million invested in a strategic capital programme.
Farmer-shareholders will receive €20 million across the next two fiscal years, with the money spread across dividends, rebates and earnings.
"We are intent on ensuring we can maximise our new combined strength to provide existing and new customers with a year-round supply of sustainable and world-class, grass-fed red meat,” said Dawn Meats Chief Executive Niall Browne.
“As part of our strategic partnership, Dawn Meats will now work closely with Alliance and its farmer-shareholders to identify and invest in capital expenditure upgrades, new technology and new sustainable business practices that will support the company's future growth and development.”
Mr Browne will form part of the Alliance Group board, along with Sean Breen, Mark Wynnem, Jared Collie and Thomas Moran as the independent chair.
Mark Wynne and Jared Collie will be joined on the directing board of the New Alliance Investment Co-operative by Matt Iremonger and Ross Bowmar.
“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,” said Alliance Group Chief Executive Willie Wise.
“Importantly, it also maintains meaningful farmer ownership and influence through a strong 35 per cent holding and robust governance arrangements.”
Dawn Meats advanced on its acquisition of a majority stake in October following a failed move from Alliance farmer-shareholders to block the deal.
