The deal includes the Pokeno manufacturing facility in north Waikato and blending and canning facility in Auckland plus associated inventory and leasehold arrangements.
Proceeds from the sale will strengthen Synlait’s financial position, the company says.
Synlait Chair George Adams says the sale marks a defining moment for Synlait.
“We are delighted to announce the entry into this agreement to sell our North Island assets to our valued customer, and global healthcare leader – Abbott.”
“For Synlait, the divestment will deliver us approximately NZ$307 million. The sale will strengthen the company’s financial position, with the proceeds used to significantly reduce debt. We are equally pleased Abbott will take onboard most of our people who work in these assets at completion – that is a great outcome.”
Synlait returned to profitablity this year after several years of losses, caused by overcapacity and large debt. The company stopped production at the $280m Pokeno plant last year and its 54 farmer suppliers have been sending their milk to Open Country Dairy.
Adams says the valuable reset presents Synlait with a rich opportunity to move beyond crises to planning a real and vibrant future.
“This is a turning point we have fought hard for and are ready to embrace.”
Synlait CEO Richard Wyeth says the North Island sale is a much-needed step change for Synlait.
“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.”
Abbott has been a customer of Synlait since 2020. The deal is expected to be completed by April 1, 2026 with the sale subject to various conditions, including Abbott obtaining consent under the Overseas Investment Act 2005 and Synlait obtaining shareholder approval, among other regulatory and customary consents.
Synlait’s majority shareholder, Bright Dairy Holding Limited (Bright Dairy), which owns 65.25% of the company, says that it will irrevocably vote in favour of the transaction.
