fbpx
Print this page
Friday, 25 October 2019 09:47

Synlait buys Dairyworks

Written by  Sudesh Kissun
Alpine products by Dairyworks. Alpine products by Dairyworks.

Canterbury milk processor Synlait is adding another business to its stable.

The listed company is paying $112 million for Christchurch-based Dairyworks, a major domestic dairy products trader.

Synlait’s purchase is subject to OIO approval.

It says the acquisition of Dairyworks will provide Synlait with another meaningful move towards the delivery of its ‘Everyday Dairy’ strategy and complements the company’s recent acquisition of cheese manufacturer Talbot Forest.

Synlait chief executive Leon Clement says this is an exciting opportunity for Synlait. 

“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.

“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.”

A family-owned business Dairyworks started in 2001.

It’s Alpine and Rolling Meadow cheese brands plus private labels hold the number one spot: 47% of the local cheese market.

It also owns the Deep South ice cream brand and makes milk powders.

Dairyworks will operate as a stand-alone business under the Synlait umbrella, with its chief executive Tim Carter, reporting to Clement.

More like this

Deal to bring cost relief for farmers

Listed milk processor Synlait is partnering with rural retailer Farmlands to deliver exclusive discounts to farmer suppliers, who have been battling high farm input costs for the past two years.

Synlait's woes mounting

Synlait Milk's financial woes are mounting with farmer suppliers expressing concern about the state of the Canterbury milk processor.

Share tumble

OPINION: If you are an investor in listed Canterbury milk processor, Synlait then you may have a reason to be worried.

Featured

Sheep drench resistance costly

Analysis by Dunedin-based Techion New Zealand shows the cost of undetected drench resistance in sheep has exploded to an estimated $98 million a year.

Dairy sheep and goat turmoil

Dairy sheep and goat farmers are being told to reduce milk supply as processors face a slump in global demand for their products.

Hurry up and slow down!

OPINION: We have good friends from way back who had lived in one of our major cities for many years.

National

Govt urged to reduce ETS units

The Climate Change Commission wants the new Government to reduce NZ Emissions Trading Scheme (ETS) auction volumes as son as…

Dairy sheep, goat woes mount

Dairy sheep and goat farmers are being told to reduce milk supply as processors face a slump in global demand…

Machinery & Products

All-terrain fert spreading mode

Effluent specialists the Samson Group have developed a new double unloading system to help optimise uphill and downhill organic fertiliser…

Can-Am showcases range

Based on industry data collected by the Motor Industry Association, Can-Am is the number one side-by-side manufacturer in New Zealand.