New Zealand-based Synlait Milk has agreed to purchase 100% of the shares of The New Zealand Dairy Company (NZDC) for NZD 33.2 million ($23.5 million).
NZDC’s site based in Auckland will now be owned by Synlait and the facilities located will be infant formula capable, enabling Synlait to lift its blending and canning capacity. The acquisition will also provide Synlait with a high specification sachet packaging line suitable for infant formula and milk powders.
Synlait’s managing director and chief executive officer John Penno said: “This purchase will allow us to meet current demand, as well as provide some room to grow with our customers’ needs. Having a second blending and packaging site will also begin to mitigate some risk we have faced as a single site manufacturing company.
“The production line will be very similar to the blending and canning plant already in operation at Synlait’s Dunsandel site, with the same scale, high standards, equipment and build specifications”
Synlait are expected to spend a total of approximately NZD 56.5 million ($39.9 million) once the plant is commissioned with an associated company which owns the land and buildings in which NZDC operates, also included in the deal.
Synlait will be seeking both MPI (Ministry for Primary Industries) and CNCA (Certification and Accreditation Administration of the People’s Republic of China) registration for the new facility.
Commissioning of the new facility is scheduled for October 2017.
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