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New Zealand dairy group Synlait Milk has agreed to sell its North Island operations to the local unit of US healthcare company Abbott Laboratories for NZ 307 million (approx. $178 million).

The deal builds on an existing relationship between the two businesses, with Abbott having been a customer of Synlait since 2020. The transaction encompasses Synlait’s Pōkeno manufacturing plant and its Auckland sites, including its blending, canning and warehousing facilities. The assets were placed under strategic review last year as the company looked to streamline its operations and strengthen its balance sheet.

The sale is expected to complete on 1 April 2026, pending regulatory approvals and shareholder consent. Synlait’s largest shareholder, Bright Dairy Holding, has already confirmed it will back the transaction.

Synlait said the sale would provide additional capital to reset its business and focus on long-term growth opportunities, while Abbott continues to expand its footprint in the infant nutrition sector.

George Adams, Synlait chair, commented: "The sale will strengthen the company’s financial position, with the proceeds used to significantly reduce debt. We are equally pleased Abbott will onboard the vast majority of our people who work in these assets at completion – that is a great outcome."

Synlait's CEO, Richard Wyeth, described the sale as a "much needed step-change" for the company. He added: "In short, this sale will deliver a stronger, simpler, and more secure Synlait. It enables us to, in time, explore opportunities to diversify what we do and better enable Synlait to reach its full potential."