The board of Alliance Group - the New Zealand farmer-owned meat processing co-operative - has unanimously endorsed a proposed partnership with Dawn Meats, which would see the Irish company invest NZ$250m (€128m) for a 65% stake in the co-op.

The decision by the board is subject to a member vote, which requires 75% shareholder acceptance of those who vote and 50% of all shareholders voting yes at a special general meeting to be held in mid-October.

The deal will also be subject to New Zealand court and regulatory approvals.

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Dawn Meats CEO Niall Browne said: “We are pleased to have been selected as the preferred long-term strategic partner of the Alliance Group and I would like to thank Alliance’s shareholders in advance for considering our offer.

“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.

Worked closely

"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.”

Alliance Group chair Mark Wynne 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.

“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.”

The Alliance board, which plans a series of member meetings in the coming months, said that if the proposal is rejected, it would be obligated to enter into a process led by its banking syndicate, which may involve possible asset sales, further site closures and further cost-reduction initiatives.

Alliance reported an after-tax loss of NZ$95.8m (€49m) for the year ended September 2024, following from a loss of NZ$70m (€35.8m) the previous year.

The group’s most recent annual accounts showed secured bank loans outstanding of NZ$200m (€102m).