The agreement was announced back in August and it sees Alliance Group’s farmer-shareholders retaining a 35pc stake in the business.
For Dawn Meats, the deal opens up the possibility of year-round supply into the crucial UK market, where both Irish and New Zealand lamb are established and popular products but have different peak seasons, as well as a foothold closer some Pacific and Asian markets.
In August, Dawn Meats, the major Waterford-based food processor, confirmed the deal to pay NZ$250m (€128m) for a 65pc stake in the Alliance Group.
Terms were backed by a vote of co-operatively owned Alliance farmer-shareholders in October.
The vote on the deal needed a minimum of 75pc acceptance of votes cast.
With the transaction now settled, about NZ$188m of the investment proceeds will go to reduce Alliance’s short-term debt, with NZ$20m to be invested into the businesses’ long-term capital programme.
Alliance’s existing farmer-shareholders will also benefit from a distribution of up to NZ$40m over two years in a mix of dividends and supply-based rebates.
We are intent on ensuring we can maximise our new combined strength
In addition, up to NZ$26m will be distributed as a special dividend to the new Alliance Investment Co-operative.
Dawn Meats CEO Niall Browne said the joint partnership will unlock “new and exciting opportunities” for both companies “and our farmer-suppliers in New Zealand, Ireland and the UK”.
He added: “We are intent on ensuring we can maximise our new combined strength to provide existing and new customers with a year-round supply of sustainable and world class, grass-fed red meat.”
Willie Wiese, CEO of Alliance Group, said completion of the transaction was an essential milestone.
“This investment provides the capital we need to strengthen our balance sheet, accelerate value growth initiatives and further enable the delivery of our strategic objectives,” he said.
“Importantly, it also maintains meaningful farmer ownership and influence through a strong 35pc holding and robust governance arrangements.”
Dawn Meats itself already employs more than 8,000 people in 10 countries and has annual revenue of about €3bn.
In addition to shareholder acceptances, the deal between Dawn Meats and Alliance Group was also subject to New Zealand High Court and regulatory approvals.
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