Dawn Meats and New Zealand-based meat processor Alliance Group have announced the formal completion of their new "strategic partnership". 

The transaction sees Dawn Meats take a 65% stake in Alliance Group, with farmer-shareholders retaining a 35% shareholding in the business. 

Alliance is New Zealand’s largest processor and exporter of sheep meat, and a key producer of beef with its produce exported to over 65 countries.

The company operates six processing plants in New Zealand.

Dawn Meats 'pleased'

Niall Browne, chief executive of Dawn Meats, said the company was pleased that the formal process of acquiring a 65% shareholding in Alliance has been completed. 

“This joint partnership will unlock new and exciting opportunities for both companies and our farmer-suppliers in New Zealand, Ireland and the UK," Browne said.

"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. 

"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."

Dawn Meats to 'work closely' with Alliance

Browne said 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". 

"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," Browne continued.

"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. 

"We know from our existing customers and new customer interest to date that our partnership creates a dynamic new offering that will allow us to meet an increasing global demand for red meat protein, in addition to opening new markets to the benefit of our farmer-suppliers in both hemispheres.

"We now intend to make the most of what is a unique opportunity for enhanced customer relationships, resources, skills, routes to market and industry knowledge." 

'Essential milestone'

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," Wiese said.

"This marks the start of an exciting new chapter for Alliance, one that is centred on value creation for our farmer-shareholders.

"Importantly, it also maintains meaningful farmer ownership and influence through a strong 35% holding and robust governance arrangements.”

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.

Farmer-shareholders

Farmer-shareholders will benefit from a distribution of up to NZ$20 million in the current financial year (25/26) and up to NZ$20 million in the next financial year (26/27).

In FY25/26, 45% will be paid as a dividend and 55% as a supply-based rebate.

In FY26/27, 75% will be paid as a rebate and 25% retained as earnings. 

In addition, up to NZ$26 million will be distributed as a dividend from the joint venture to the new Alliance Investment Co-operative following a stronger-than-forecast year-end result for Alliance.

The directors of the Alliance Group board are: Thomas Moran (independent chair); Niall Browne; Sean Breen; Mark Wynne; and Jared Collie.

The directors of the New Alliance Investment Co-operative are: Mark Wynne; Jared Collie; Matt Iremonger; and Ross Bowmar.