Synlait will acquire Dairyworks for NZ$112m (approximately AU$104m), a move which it says will bolster its Everyday Dairy strategy.
Dairyworks supplies almost half of New Zealand’s cheese and a quarter of its butter, as well as milk powder and its Deep South ice cream.
According to Leon Clement, CEO of Synlait, the acquisition represents a great opportunity for Synlait, and complements its recent purchase of cheesemaker Talbot Forest.
“This business is a great strategic fit for us and an important step in growing our presence in the Everyday Dairy category.”
“Dairyworks is a nimble and innovative company. It will fit well with Synlait and provides us with an opportunity to keep optimising our value chain while giving access into Australia where Dairyworks presence is growing,” he said.
Dairyworks will continue to operate as an independent company under the Synlait umbrella with its CEO, Tim Carter, reporting to Clement.
“Opportunities exist in both businesses to streamline supply chains and enhance our competitiveness. It gives us the ability to optimise how we process milk solids and get the most value from our supply of milk.
“We’re excited by this opportunity as we work to capture more value in the dairy market in New Zealand and globally,” said Clement.
