Synlait acquires New Zealand company Dairyworks for $71m

Synlait has announced a deal to acquire New Zealand-based Dairyworks for NZD 112 million ($71.1 million) as it looks to expand in Australia.

Based in Christchurch, Dairyworks initially launched cheese products under the Alpine brand in 2001 and now produces a range of cheese, butter, milk powder and ice cream under brands such as Rolling Meadow, Deep South and Dairyworks.

The dairy processor, which employs 240 people, will operate as a stand-alone business under the Synlait umbrella, with its CEO Tim Carter reporting to Synlait CEO Leon Clement.

Synlait said the deal complements its recent acquisition of selected assets of cheese manufacturer Talbot Forest.

“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,” said Clement.

“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.”

Earlier this month, Synlait announced that its CFO Nigel Greenwood will step down from his role in March or April next year.