Dairy processing company Synlait to acquire Talbot Forest Cheese

New Zealand’s dairy processing company Synlait has signed an agreement to acquire Talbot Forest Cheese’s brand, customer relationships, property, plant and equipment at the Temuka site ahead of a full acquisition next year.

Beginning 1 August 2019, Synlait will assume complete ownership of Talbot Forest Cheese and take over its dairy processing operations

For the current deal, Synlait is planning to make an investment ranging between N$30m ($20m) and N$40m ($26m).

Synlait’s new CEO Leon Clement said: “This acquisition enhances our current portfolio, and will cement Synlait as a company with high-quality, flexible dairy manufacturing capabilities that can be tailored to meet customer needs.

“We will be able to manufacture a variety of cheese products that complement our existing product portfolio, while at the same time further diversifying our revenue streams.”

The acquisition is also expected to support Synlait’s growth within the Everyday Dairy category worldwide.

In February this year, Synlait conditionally acquired 28ha of land in Pokeno, North Waikato, for the construction of its second nutritional powder manufacturing unit.

The dairy company announced an investment of nearly NZ$260m ($187.5m) to build the facility, which produces infant base powder.

Synlait also recently doubled its net profit to $74.6m, which represents an increase of 89%.

For the fiscal year ending 2018, the company’s top line revenue increased from $759m to $879m, and bottom line profit after tax rose from $39.5m to $74.6m.