Synlait (ASX:SM1) set to purchase Dairyworks

Company News

by Katrina Bullock

Dairy processing company, Synlait (ASX:SM1) is set to purchase Dairyworks for $112 million, subject to Overseas Investment Office approval.

Dairyworks currently supplies New Zealand with almost half of its cheese and a quarter of the country’s butter.  This follows the recent acquisition of cheese manufacturer, Talbot Forest.

Dairyworks will continue to operate as a stand-alone company under the direction of CEO, Tim Carter, who will now report in to Sinlait CEO Leon Clement.

Mr Clement says “opportunities exist in both businesses to streamline supply chains and enhance our competitiveness. It gives us the ability to optimize how we process milk solids and get the most value from our supply of milk.”

Shares in Synlait (ASX:SM1) closed 1.73 per cent lower at $9.10 yesterday.

Katrina Bullock

Finance News Network
Katrina joined FNN in 2018. She holds a Bachelor of Laws (Honours first class), a Bachelor of Business (Distinction) and is currently undertaking a PhD in Law focused on stock exchange disclosures and corporate governance. She previously worked as a corporate lawyer in an Australian top tier commercial law firm and is currently the General Counsel for Greenpeace Australia Pacific.