The A2 Milk Company has completed its $282 million purchase of Yashili New Zealand’s Pokeno nutritional manufacturing facility from China’s Mengniu Dairy Group.
The deal gives the company full ownership of an integrated plant with two China label infant milk formula products, which it plans to relaunch under the A2 Milk brand within 12 to 18 months, subject to regulatory approval.
Chairperson Pip Greenwood said the acquisition gave the company more certainty around its capital requirements.
“It also brings us closer to returning value to shareholders through an intended $300 million special dividend,” she explains.
Moreover, the facility also offers the potential for a third registration slot. Its facility has been a key producer of A2 Milk’s English label products and will play a central role in the company’s growth plans in China.
“The Pokeno facility is world-class with a proven way record of producing high-quality infant milk formula, including our English label products, A2 Gentle Gold and A2 Genesis,” added MD and CEO David Bortolussi.
