Alliance Group To Partner With Dawn Meats
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- Dawn Meats plans to acquire 65 percent of Alliance Group shares for NZ$250 million.
- Proposed deal aims to strengthen finances, fund growth and deliver returns to farmer shareholders.
- Partnership would create strong global market presence combining beef and lamb expertise.
Alliance Group has announced that shareholders will soon vote on a proposed strategic partnership with Dawn Meats Group, one of Europe’s leading red meat processors.
Under the deal, Dawn Meats Group would invest NZ$250 million to acquire 65 percent of Alliance Group’s shares, valuing the business at NZ$502 million on an enterprise basis. The investment remains subject to shareholder approval, High Court consent and regulatory clearance.
Proceeds from the transaction would be used to reduce short-term debt by around NZ$200 million, accelerate strategic capital projects and enable the distribution of up to NZ$40 million to the co-operative, depending on livestock supply from shareholders.
Alliance Group Chair Mark Wynne said the agreement followed a two-year process to reset and recapitalise the business.
“Alliance was built by farmers for farmers and has a proud co-operative 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.
“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 United Kingdom and Europe, and Alliance’s strength in lamb and market access across China, wider Asia 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 per cent stake grow over the long term.”
The transaction would be implemented through a Scheme of Arrangement and requires at least 75 percent approval from voting shareholders and over 50 percent of all shareholding voting in favour at a Special General Meeting in Invercargill in mid-October.
If shareholders reject the offer, Alliance’s Board would be required to work with its banking syndicate on possible asset sales, site closures and cost-cutting measures.
Dawn Meats Chief Executive Niall Browne said, “Having the ability to grow in partnership with some of New Zealand’s leading farmers and create year-round supply for our customers between the Northern and Southern Hemispheres is an opportunity we are deeply committed to and take very seriously.
“Our ‘can do’, keep-it-simple and commonsense culture aligns naturally with Alliance. The opportunity here is to create a dynamic industry competitor with a unique combination of customer relationships, resources, skills, routes to market and industry knowledge that will give us a powerful competitive edge, both locally and globally.”
Founded in 1980 by three farming families in Waterford, Ireland, Dawn Meats operates 24 facilities across 10 countries, employs more than 8,000 people and processes over 3.5 million sheep and one million cattle each year. Its brands, including Dunbia in the UK, supply retailers, manufacturers and foodservice operators in more than 50 countries.
Mr Wynne said, “In the last 18-24 months, we have implemented a huge amount of change across every aspect of the business. This is an opportunity to lay an enduring foundation that will offer an opportunity for Alliance to thrive and deliver more value to our farmers.”
Key indicative dates include the Scheme Booklet release on 15 September 2025, farmer roadshows from 29 September, and shareholder vote and regulatory outcomes expected by December 2025.