A2 Milk said it had completed the acquisition of a 75 per cent interest in Southland dairy nutrition company, Mataura Valley Milk (MVM), from China Animal Husbandry Group (CAHG), which will retain a 25 per cent interest.
The terms of the transaction were consistent with those previously advised, with a2 Milk paying $268.5 million, payable from cash reserves, for the majority holding.
At its last interim results announcement in February, a2 Milk said its cash reserves were a healthy $774.6m.
A2 Milk's move into manufacturing is in part aimed at lessening its reliance on its current sole infant formula provider, Synlait Milk, in which it has a 20 per cent stake.
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The company has said the MVM move would provide supply diversification, further strengthen relationships with key strategic partners in China, and offer access to manufacturing margins over time.
CAHG is a subsidiary of China National Agriculture Development Group, which is the parent of a2's strategic logistics and distribution partner in China, CSFA Holdings Shanghai (China State Farm).