[30 May/ Dairy Reporter]

Synlait Milk has purchased 100 percent of the shares of The New Zealand Dairy Company (NZDC). NZDC is constructing an infant formula capable blending and canning operation in Mangere and will allow Synlait to increase its blending and canning capacity substantially. The acquisition will provide Synlait with a high specification sachet packaging line suitable for infant formula and milk powders. Managing Director and CEO of Synlait, Dr John Penno, said the acquisition allows Synlait to meet current demand and provide growth opportunities, as well as mitigate the risk of being a single-site manufacturing company. The investment includes a gross payment of $33.2 million on the acquisition, and Synlait expects to spend $56.5 million after the plant is commissioned, scheduled for October 2017.