Synlait announces conditional acquisition of Dairyworks in New Zealand

New Zealand’s dairy processing company Synlait has announced a conditional acquisition of South Canterbury-based Dairyworks for NZ$112m ($71m).

Established in 2001, Dairyworks produces cheese, butter, milk powder and ice-cream products at its manufacturing facility in Christchurch, New Zealand.

It offers its cheese and butter products under various consumer brands, including Dairyworks, Rolling Meadow and Alpine, which are distributed to supermarkets in New Zealand and Australia.

Synlait CEO Leon Clement said: “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.”

Acquisition of Dairyworks is part of Synlait’s Everyday Dairy strategy.

Completion of the deal is subject to approval of Overseas Investment Office.

Upon completion of the deal, Dairyworks will operate as an independent business entity under the Synlait umbrella, with Tim Carter serving as its CEO. Carter will report to Clement.

In September 2018, Synlait 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.

Beginning 1 August, Synlait assumed complete ownership of Talbot Forest Cheese and took over its dairy processing operations