The partnership means Dawn Meats will now proceed to acquire a 65% shareholding in Alliance Group, with farmer-shareholders retaining a 35%.
The deal was agreed after the farmer-shareholders of Alliance Group voted in favour of a proposed NZ$270 million (£115.8 million) strategic partnership.
Of those that voted, more than 87% were in favour of the proposal, meeting the threshold required under the Takeovers Code.
Niall Browne, chief executive of Dawn Meats said: “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.”
Browne added: “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 said the joint venture with Alliance will assist in further growing and developing the New Zealand business and exporting the highest-quality grass-fed lamb, beef and venison.
“Dawn Meats already has a strong operations network in Ireland, the UK and in 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 said.
Mark Wynne, chair of Alliance Group, said the result demonstrated 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 said.
“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 the positive outcome followed a comprehensive two-year process to reset and re-capitalise the business.
