Alliance Group is moving forward with a proposal to enter into a strategic partnership with Dawn Meats Group, a leading European red meat processor. This partnership, which requires shareholder approval, could see Dawn Meats invest NZ$250 million for a 65% stake in Alliance Group, which would value the company at NZ$502 million.
The deal is contingent on approval from Alliance’s shareholders, High Court consent, and regulatory clearance. Should the agreement proceed, Alliance intends to use the funds to reduce its short-term debt by NZ$200 million and accelerate strategic capital projects. Depending on livestock supply, up to NZ$40 million may be distributed to the cooperative’s shareholders.
The partnership aligns with Alliance’s goal of strengthening its business after a two-year process of recapitalisation. Dawn Meats, with its strong financial position and market presence across the UK and Europe, would bring complementary strengths to Alliance, particularly in beef production. In return, Alliance’s expertise in lamb and market access in China, Asia, and North America would enhance Dawn Meats’ global reach.