Synlait Milk agrees North Island asset sale to Abbott Laboratories

Core Viewpoint - Synlait Milk has agreed to sell its North Island assets to Abbott Laboratories for approximately US$178 million, while the company has returned to EBITDA profitability and reduced net losses to NZ$40 million in fiscal 2025 [1][4]. Group 1: Asset Sale Details - The North Island assets include Synlait's Pokeno factory, a blending and canning facility, and a warehouse, which were identified as underutilized and incurring financial losses [2][4]. - The gross value of the North Island assets is around NZ$273 million, representing more than half of Synlait's average market capitalization of NZ$429.7 million [3]. - The transaction is expected to close on April 1, pending consent under the Overseas Investment Act [3]. Group 2: Financial Impact - Proceeds from the asset sale will significantly reduce Synlait's debt, which decreased from NZ$551.6 million to NZ$250.7 million in fiscal 2025 [7]. Group 3: Partnership with Abbott - Abbott has been a customer of Synlait since 2020 and the partnership will continue post-transaction for transitional services for up to three years, with potential extensions [6]. - The Pokeno facility was customized to process both dairy and non-dairy nutritional products following the agreement with Abbott [6].