Dawn Meats will get a 65% interest in Alliance Group for $250m
Simpson Grierson has assisted farmer-owned red meat co-operative Alliance Group on its proposed strategic partnership with European red meat processor Dawn Meats.
Under the deal, Dawn Meats will get a 65% interest in Alliance Group for $250m. With the investment, Alliance Group can reduce debt facilities, speed up strategic capital investment and make loyalty payments to farmers in coming years.
According to Simpson Grierson co-lead partner Andrew Kirk, the transaction “delivered a compelling proposal from a partner with similar values, and complimentary expertise and global sales networks”.
“Alliance should be proud of its board and management team in carrying out a best-practice global capital raise process, while continuing to adeptly operate the business through a challenging environment”, Kirk said. “It is now up to the Alliance shareholders to engage in the process and decide on the company’s future”.
The firm noted that the deal could have long-term benefits for red meat farmers across New Zealand. It collaborated with Alliance Group’s board and management teams, Craigs Investment Partners, and PwC on the transaction’s structuring, negotiation and documentation.
The deal is pending approval from shareholders and the High Court, as well as regulatory approval.
Alongside partner James Hawes, Kirk co-led a team that guided Alliance Group through a competitive bidding process. The team advised on structuring and oversaw regulatory and scheme implementation processes.
The Simpson Grierson team consisted of partners James Craig, Michael Pollard, Tara Wylie, Dominic Toomey and James Caird; consultant Steve Flynn; senior associates Beth Reed, Josiah Koh, Catherine Shipton and India Townsend; senior solicitors Henry King and Grace Dimond; and solicitors James Burnett, Claudia Gray and Caroline Wells. These lawyers hailed from the firm’s offices in Auckland, Wellington and Christchurch.
