Scales and Alliance to create pet meat joint venture
Meat cooperative Alliance Group will pay $15 million for a 50 percent stake in Scales Corp's Meateor petfood business.
Andy Borland, managing director of agribusiness company Scales, says the joint venture "is about developing New Zealand as the premier supplier of petfood proteins.
"We think the venture provides a number of benefits to the entire New Zealand petfood-supply industry, including as an avenue for the industry to improve scale."
Alliance chief executive David Surveyor says the joint venture "extends Alliance's downstream reach, allows Alliance to become vertically integrated and ensures we have an end-to-end connection with the market."
The implied valuation for Meateor’s New Zealand business is $30 million and settlement is scheduled for this month.
Meateor Foods processes and markets meat and other ingredients from New Zealand and Australia to the pet food industry worldwide. It exports more than 19,000 tonnes a year, Borland says.
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