Dawn Meats has announced a deal to acquire a majority stake in New Zealand meat producer Alliance Group.
The Waterford-headquartered firm will take a 65% stake in the business as part of a €127.7m investment.
Alliance is New Zealand's largest processor and exporter of lamb, and operates six processing plants in the country. It is owned by about 4,300 shareholders,
The proposed partnership is still subject to shareholder approval as well as New Zealand High Court and regulatory approvals.
Niall Browne, chief executive of Dawn Meats, said the company was pleased to have been selected as the preferred long-term strategic partner of the Alliance Group.
"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. 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," Mr Browne said.
He said that 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," he added.
Mark Wynne, Alliance Group Chair, said the announcement comes after a two-year process to reset and recapitalise Alliance.
"Alliance was built by farmers for farmers and has a proud cooperative legacy. 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. However, we need this investment to provide certainty and confidence and ultimately unlock more value for our farmers," he said.
"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," he stated.
"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% stake grow over the long term," he added.
