NEW ZEALAND – The Canterbury-headquarter dairy company, Synlait has secured a deal to acquire New Zealand-based Dairyworks for NZD112 million (US$71.1 million) to support its expansion in Australia.

Based in Christchurch – South Canterbury, Dairyworks has grown into one of the largest companies operating in New Zealand’s everyday dairy category, since its inception in 2001

Dairyworks produces a range of cheese, butter, milk powder and ice cream under brands such as Rolling Meadow, Deep South and Dairyworks.

Synlait CEO Leon Clement said the acquisition would provide Synlait with another meaningful move towards the delivery of its growth strategy and complemented the company’s recent acquisition of 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.

“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,” he said in a statement.

“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,” he added.

Post transaction, Dairyworks will operate as a stand-alone business under the Synlait umbrella, with its chief executive officer Tim Carter, reporting to Clement.

 “We’re excited by this opportunity as we work to capture more value in the dairy market in New Zealand and globally,” Clement added.

Dairyworks supplies New Zealand with almost half of its cheese, a quarter of the country’s butter, as well as milk powder and the Deep South ice cream enabling both companies to streamline supply their chains and enhance competitiveness.

The deal is subject to Overseas Investment Office approval. Early this year, Synlait closed the acquisition of Talbot Forest Cheese assets enableing the company to manufacture a variety of cheese products.