Two global pet food ingredients suppliers based in New Zealand, Alliance Group and Meateor, have struck a deal that will create a $30 million joint venture, funded equally by both parties.
This venture is the result of Alliance Group acquiring a 50% interest in Meateor, which is owned by Scales Corporation, for $15 million.
“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,” said Daniel Surveyor, chief executive at Alliance. Alliance is New Zealand’s only co-operative owned solely by farmers. Surveyor said the venture is aimed to add value that will benefit its shareholders.
“The business provides us with immediate and direct access to the highly attractive and growing global pet food market. This investment also gives Alliance Group the leading position in New Zealand pet food market with Meateor operating processing plants in both the North and South Islands,” he added. “Meateor has established itself as a strong domestic and international pet food ingredients business, and we are pleased to be partnering with their high-quality team.”
Surveyor also added that the two New Zealand companies will be able to successfully cater to the increasing demand for premium-quality ingredients, especially meat, in global pet food and treat markets through this partnership.
