Alliance Group Finalizes $270 Million Merger with Dawn Meats

The Alliance Group has successfully completed a significant merger, selling a 65% stake to Dawn Meats for $270 million. This strategic partnership allows farmer-shareholders to maintain a 35% ownership in the company. The transaction represents a crucial milestone for Alliance, as stated by chief executive Willie Wiese.

Wiese emphasized the importance of this partnership, noting, “We can move from planning to implementation with a partner that brings scale, global reach, and expertise that clearly creates a competitive advantage.” He expressed optimism about this new chapter, which aims to enhance value for farmer-shareholders.

Following the merger, approximately $188 million of the investment proceeds will be used to reduce Alliance’s short-term working capital facility. Additionally, $20 million will be allocated to the company’s strategic capital programme designed to improve overall performance.

Farmer-shareholders can expect to receive distributions amounting to up to $20 million in the current financial year (FY25/26) and another $20 million in the subsequent financial year (FY26/27). In FY25/26, 45% of the distribution will be paid as a dividend, while 55% will come as a supply-based rebate. Conversely, in FY26/27, 75% of the distribution will be provided as a rebate, with 25% retained for earnings.

In addition, the joint venture is projected to distribute up to $26 million as a special dividend to the newly formed Alliance Investment Co-operative, reflecting a stronger than anticipated year-end result for the company.

Last month, Alliance announced a remarkable turnaround in profitability, reporting a net profit before tax of $24.6 million on revenue of $2.1 billion for the year ending September 30. This marks a significant improvement from the previous year, where the company recorded a net loss of $120.8 million on revenue of $1.8 billion.

The board of directors for the Alliance Group includes Thomas Moran as independent chairman, along with Niall Browne, Sean Breen, Mark Wynne, and Jared Collie. Wynne and Collie will also serve as directors for the New Alliance Investment Co-operative, alongside Matt Iremonger and Ross Bowmar. This new structure positions the Alliance Group for future growth and success in the competitive meat industry.