Synlait Milk Limited (Synlait) has announced its financial results for the 12 months ended July 2025 and the entry into a binding conditional agreement to sell its North Island assets.
Synlait Chair George Adams said this was a defining moment for Synlait.
"We are delighted to announce the entry into this agreement to sell our North Island assets to our valued customer, and global healthcare leader – Abbott," said Adams.
“For Synlait, the divestment will deliver us approximately NZD 307 million. The sale will strengthen the company’s financial position, with the proceeds used to significantly reduce debt. We are equally pleased Abbott will onboard the vast majority of our people who work in these assets at completion – that is a great outcome.”
He added that this valuable reset presented Synlait with a rich opportunity to move beyond crises and plan a real and vibrant future, and that this was a turning point that the company had fought hard for and was now ready to embrace.
Global healthcare leader Abbott has been a Synlait customer since 2020.
The two companies have now negotiated the sale and purchase of Synlait’s North Island assets – these are the Pōkeno manufacturing facility, along with the company’s Auckland sites (assets held at the blending and canning facility on Richard Pearse Drive and the warehouse facility on Jerry Green Street), and associated inventory and leasehold arrangements.
The sale price is approximately NZD 307 million. Targeted completion is the 1st of April 2026, with the sale subject to various conditions, including Abbott obtaining consent under the Overseas Investment Act 2005 and Synlait obtaining shareholder approval, amongst other regulatory and customary consents.
“The North Island sale is a much-needed step change for Synlait. In short, this sale will deliver a stronger, simpler, and more secure Synlait," said Synlait CEO Richard Wyeth.
"It enables us to, in time, explore opportunities to diversify what we do and better enable Synlait to reach its full potential.”
Synlait’s majority shareholder, Bright Dairy Holding Limited (Bright Dairy), owns 65.25 percent of the company, and has stated that it will irrevocably vote in favour of the transaction. This means the shareholder approval condition will be satisfied. The Board of Directors fully supports the North Island sale and unanimously recommends that shareholders vote in favour of the resolution.
FY26 presents a valuable reset for Synlait, with the entry into an agreement to sell its North Island assets. The sale will strengthen the company’s financial position, with the proceeds used to reduce debt significantly. The targeted completion date for the sale is 1 April 2026.
The sale enables Synlait to refocus on its core operations in Canterbury, with a renewed emphasis on operational stability at its Dunsandel facility, which will assist in driving longer-term profitability. Continued growth in the company’s Dairyworks business will also support this focus.
Given the scale of the strategic reset, the company will not provide further financial guidance for FY26, as it concentrates on executing the North Island sale and building a simpler and more focused Synlait in Canterbury.
The Board is committed to capitalising on the strategic opportunities ahead and aims to have an updated strategic plan in place by March 2026.
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