The transaction sees Dawn Meats take a 65% stake in Alliance Group, with farmer-shareholders retaining a 35% shareholding in the business.
The deal was agreed in October after the farmer-shareholders of Alliance Group voted in favour of a proposed NZ$270 million (£115.8 million) strategic partnership.
With the transaction now settled, approximately NZ$188 million of the investment proceeds will be applied to reduce Alliance’s short-term working capital facility and NZ$20 million will be invested in the company’s strategic capital programme to lift performance.
Niall Browne, chief executive of Dawn Meats, said: “This joint partnership will unlock new and exciting opportunities for both companies and our farmer-suppliers in New Zealand, Ireland and the UK. This investment expands our business significantly and positions us, our UK company Dunbia and Alliance Group as a unified and dynamic industry competitor with a substantial presence and customer base in both the Northern and Southern hemispheres.”
He said the company is intent on ensuring it can maximise its “new combined strength” to provide existing and new customers with a year-round supply of sustainable and world class, grass-fed red meat.
He confirmed that the strategic partnership would mean that Dawn Meats would work closely with Alliance and its farmer-shareholders to identify and invest in capital expenditure upgrades, new technology and new sustainable business practices.
“Throughout the process of securing this strategic partnership, Dawn Meats was clear about the potential benefits of combining our knowledge and experience with that of Alliance and its farmer-shareholders. Alliance is a leading New Zealand business with a proud legacy of cutting-edge processing and history of exporting the highest-quality grass-fed lamb, beef and venison,” Browne said.
Willie Wiese, chief executive of Alliance Group, said the completion of the transaction was an essential milestone.
“We can move from planning to implementation with a partner that brings scale, global reach and expertise that clearly creates a competitive advantage. This marks the start of an exciting new chapter for Alliance, one that is centred on value creation for our farmer-shareholders,” he said.
“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. Importantly, it also maintains meaningful farmer ownership and influence through a strong 35% holding and robust governance arrangements.”
Farmer-shareholders will also benefit from a distribution of up to NZ$20 million in the current financial year (FY25/26) and up to NZ$20 million in the next financial year (FY26/27).
In FY25/26, 45% will be paid as a dividend and 55% as a supply-based rebate. In FY26/27, 75 per cent will be paid as a rebate and 25 per cent retained as earnings.
In addition, up to NZ$26 million will be distributed as a special dividend from the joint venture to the new Alliance Investment Co-operative following a stronger than forecast year-end result for Alliance.
