a2 Milk Buys Yashili NZ Plant, Sells MVM Stake
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The a2 Milk Company has finalised the $282 million purchase of Yashili’s infant formula manufacturing plant in Pōkeno and sold its majority stake in Mataura Valley Milk (MVM) to Open Country Dairy.
The Pōkeno facility, formerly owned by China’s Mengniu Dairy, will be enhanced through a $100 million investment programme by a2 to boost production and capability. Over 100 jobs are expected at the site. a2 says the purchase is a strategic milestone in developing its supply chain and reducing business risk.
a2 has also struck a long-term milk supply agreement with Fonterra, including access to A1 protein-free milk from 50 Waikato farms.
Meanwhile, a2 has offloaded its 75% stake in MVM near Gore, a facility it bought for $268.5m in 2021. Open Country, New Zealand’s second-largest dairy processor, will take over the advanced plant and continue supplying a2 with A1 protein-free powder. a2 expects to receive $100m from the sale and will remain a major customer.
The moves come after a2 reported full-year revenue of $1.9 billion and net profit of $202.9 million. It announced a final dividend and a special $300 million dividend following recent regulatory progress in China.