Synlait Milk Agrees North Island Asset Sale To Abbott Laboratories

Credit: Naruedom Yaempongsa/Shutterstock

New Zealand dairy and infant-formula business Synlait Milk has agreed to waste its North Island assets to nan section portion of US-based Abbott Laboratories.

As Synlait announced coming (29 September) it had returned to EBITDA profitability and trimmed nett losses to NZ$40m (-$23.1m) successful fiscal 2025, nan institution revealed nan woody for nan balanced of US$178m pinch Abbott.

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The North Island assets, which were portion of a strategic reappraisal past year, fundamentally dwell of Synlait’s Pokeno factory, a blending and canning installation connected Richard Pearse Drive, and a storage connected Jerry Green Street.

In a abstracted announcement today, New Zealand and Australia-listed Synlait confirmed its largest shareholder – Bright Dairy successful China pinch 65.25% – will ballot its support connected nan waste connection astatine a gathering of investors connected 21 November.

The gathering has been called because nan waste assets comprise a important proportionality – much than half – of Synlait’s mean marketplace capitalisation.
That was NZ$429.7m arsenic of nan marketplace adjacent connected Friday, while nan gross worth of nan North Island assets is astir NZ$273m, according to a statement.

The transaction is different expected to adjacent connected 1 April but Abbott will besides require consent nether nan Overseas Investment Act.

Just Food has asked Abbott for confirmation and remark from its broadside of nan plus transaction.

Synlait said it has opted to waste nan assets because they are “underutilised” and are truthful incurring financial losses for nan group business.

“Retention of nan assets while attempting to amended utilisation, and carrying nan associated execution risk, is not prudent successful nan look of a compelling connection from a reliable buyer,” Synlait explained.

The Pokeno installation is “capable of producing a afloat suite of nutritional, formulated powders (including infant-grade skim milk, full beverage and infant-formula guidelines powders),” nan institution said, adding nan works was “designed pinch capacity to nutrient 45,000 metric tonnes of spray dried product”.

Abbott has been a Synlait customer since 2020 nether a manufacturing agreement. The business will proceed station nan North Island transaction for a “range of transitional services” for up to 3 years and a imaginable hold thereafter.

Details of those arrangements were not disclosed.

Synlait added that pursuing nan 2020 statement pinch Abbott, nan Pokeno mill underwent “customisation to alteration nan capacity to process dairy and non-dairy nutritional products”.

Proceeds from nan plus waste would trim Synlait’s debt, which was trim successful fiscal 2025 from NZ$551.6m to $250.7m.

Under nan anchor of CEO Richard Wyeth, who joined nan business successful May, Synlait has built connected its first-half performance aft what had been challenging times for nan institution marked by a bid of profit warnings.

“Our caller CEO Richard Wyeth has a clear scheme to guarantee Synlait’s group are focused connected nan correct areas to present an uplift successful capacity during FY-26,” president George Adams said successful nan results position today, adding that “12 months ago, Synlait was fighting for survival”.

Last year, nan institution had to move to Bright Dairy and its second-largest shareholder The A2 Milk Co. for financial support amid a deficiency of backing to support nan institution operational, replete pinch threats from its husbandman beverage web to retreat supplies.

Synlait besides needed a NZ$130m bailout indebtedness from Bright Dairy past year. In nan meantime, a colony pinch A2 Milk complete a long-running contractual and pricing conflict was besides reached.

A nett nonaccomplishment aft taxation of NZ$40m was reported coming for nan 2025 financial year, compared to a NZ$182m nonaccomplishment successful nan corresponding period.

EBITDA turned to a NZ$51m profit from a NZ$4m loss. EBIT was still successful nan reddish astatine NZ$6m but was down from a NZ$183m loss.

Revenue climbed 11.5% to NZ$1.83bn.