Synlait to sell North Island assets for over NZ$300m

New Zealand dairy business Synlait Milk Limited (Synlait) has agreed to sell its North Island assets to global healthcare company Abbott.

The assets include 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.

“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 Synlait Chair George Adams.

“For Synlait, the divestment will deliver us approximately NZ$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.

“This valuable reset presents Synlait with a rich opportunity to move beyond crises to planning a real and vibrant future. This is a turning point we have fought hard for and are ready to embrace.”

Synlait CEO Richard Wyeth commented: “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. It enables us to, in time, explore opportunities to diversify what we do and better enable Synlait to reach its full potential.”

Subject to various conditions, the sale is expected to be completed by 1 April 2026.

Image credit: iStock.com/DirkRietschel