Synlait Milk (ASX: SM1) has purchased 100% of the shares in The New Zealand Dairy Company (NZDC).
The dairy processing company will pay $33.2 million on acquisition, and $56.5 million in total once the plant is commissioned.
Synlait will now own NZDC’s Aukland-based facility, and is also building a blending and canning operating site in Aukland’s northeastern suburb of Mangere.
The purchase will also allow Synlait to produce a sachet packaging line, which is suitable for infant formula and milk powders.
Synlait Milk says having a second blending and packaging site will mitigate some of the risk it had as a single site manufacturing company.
Shares in Synlait Milk (ASX: SM1) are trading 0.8% higher to $3.80 .
