Alliance farmer-shareholders vote in favour of strategic investment partnership with Dawn Meats
Alliance Group farmer-shareholders have voted in favour of a proposed $270 million joint venture investment by Dawn Meats.
Dawn Meats, one of Europe’s leading red meat processors, will acquire a 65 per cent shareholding in Alliance Group, with farmer-shareholders retaining a 35 per cent stake.
A total of 2,675 shareholders voted, representing 92,495,558 shares or more than 88 per cent of all shares on issue. Of these, more than 87 per cent voted in favour of the proposal, meeting the threshold required under the Takeovers Code.
Alliance Group chair Mark Wynne said the result demonstrates strong farmer confidence in the company’s future direction.
“Our farmer-shareholders have given a clear mandate for Alliance to move forward in partnership with Dawn Meats. This is a vote of trust in our people, our operations and our vision.
“We’re really excited about the potential for this partnership and what the future holds for Alliance and Dawn.
“This essential investment will strengthen our financial position, enhance our operational capability and enable us to capture more value in market for our farmers and the country.
“Importantly, the agreement also preserves farmer ownership, with a continuing 35 per cent shareholding and strong governance rights.”
Mr Wynne said the positive outcome followed a comprehensive two-year process to reset and re-capitalise the business.
“The Board explored every option to secure Alliance’s future. The Dawn Meats proposal stood out as the best strategic and financial path forward, a view confirmed by independent adviser Northington Partners.
“By combining Alliance’s lamb expertise and global reach with Dawn Meats’ strength in beef and market access across Europe and the UK, we unlock significant commercial and operational synergies.
“This partnership gives our farmer-shareholders the opportunity to see the value of their residual 35 per cent stake grow over the long term.
“On behalf of the Alliance Board, I want to thank shareholders for their trust and confidence, and the Alliance team for achieving a remarkable turnaround.
“The future looks much brighter than it did 12 months ago. We’re looking forward to getting down to work.”
Niall Browne, chief executive of Dawn Meats, said: “We are pleased and excited by the outcome of the vote by Alliance’s farmer-shareholders and we now look forward to maximising the potential of the new opportunities this strategic partnership will unlock in the future for both Dawn Meats and Alliance.
“Following an extensive engagement and due diligence process, Dawn Meats put forward a strong strategic partnership proposal involving a significant investment in a world-class company that shares our values, ambition and commitment.
“I would like to thank Alliance’s farmer-shareholders for carefully considering our offer over the last two months and supporting it to such an extent.”
He added: “Dawn Meats has a proven track record of successfully partnering with other businesses and we believe this joint venture with Alliance will assist in further growing and developing what is an excellent New Zealand business with a proud legacy of processing and exporting the highest-quality grass-fed lamb, beef and venison.
“Dawn Meats already has a strong operations network in Ireland, the UK and in the EU. Having the ability to now grow in partnership with some of New Zealand’s leading farmers, and create a year-round supply for our customers between the Northern and Southern Hemispheres, is a fantastic opportunity and one our customers are already responding to.
“We believe this partnership will create a dynamic industry competitor with a unique combination of customer relationships, resources, skills, routes to market and industry knowledge, giving both Dawn Meats and Alliance a powerful competitive edge, locally and globally.
“In addition to thanking Alliance’s farmer-shareholders, I would also like to thank the Board of Alliance, the company’s leadership and staff of Alliance Group, who assisted us throughout this well-managed process.
“Our existing team in Dawn Meats and Dunbia look forward to working with our new colleagues in Alliance and I would like to welcome them to the Dawn Meats family.”
Approximately $200 million of the investment proceeds will be used to reduce Alliance’s short-term working capital facility, with the balance directed toward accelerating the Board’s strategic capital expenditure programme.
Farmer-shareholders will also benefit from distributions of up to $20 million in both the current (FY26) and next financial year (FY27). In FY26, 45 per cent will be paid as a dividend and 55 per cent as a supply-based rebate.
In FY27, 75 per cent will be paid as a rebate and 25 per cent retained as earnings. Rebate payments will be calculated on a three-year rolling average of supply and capped at the current shareholding.
In addition, up to $25 million will be distributed as a dividend from the joint venture to the proposed Alliance Investment Co-operative following a stronger than forecast year-end result for Alliance.
“This outcome provides Alliance with a strong foundation for the future,” said Mr Wynne.
“We are now well positioned to thrive alongside a complementary partner like Dawn. Together, we can deliver enduring profitability, significant global opportunities and capture greater value for our farmer-shareholders.”
ENDS
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Notes to editors
About Alliance
Alliance is New Zealand’s largest processor and exporter of sheep meat, and a key producer of pasture-fed premium beef with its quality produce exported to over 65 countries. The company operates six processing plants in New Zealand.
About Dawn Meats
Dawn Meats is the supplier of choice to a range of leading supermarket, foodservice and manufacturing businesses, exporting to more than 50 countries. As a family-owned business, Dawn Meats remains true to its farming heritage through the close relationships it has forged with over 40,000 family farms from which it directly sources grass-fed cattle and lamb for processing at its 11 Irish and 13 UK sites. Dawn Meats was established in Co Waterford, Ireland, in 1980, and has grown to a business with over €3 billion in annual revenue, employing over 8,000 staff in ten countries. The company works with some of the world’s leading food companies who are attracted by a commitment to sustainability and quality. Trading as Dunbia in the UK and Dawn Meats in Ireland, the combined businesses process approximately 1m cattle and 3.5m sheep annually.
