Major shareholder Bright Dairy Holding has confirmed it will vote in favor of selling Synlait’s North Island assets to US-based Abbott Laboratories for $307 million, along with supporting other resolutions at the company’s November 21 annual meeting. This shareholder backing represents critical support for a transaction that Wyeth describes as offering a clear path forward for the embattled dairy processor. The Abbott sale proceeds will be directed toward debt reduction, with net debt currently standing at $250.7 million, enabling Synlait to eliminate term debt completely and establish what management characterizes as a strong financial foundation.

Wyeth, who assumed the chief executive role in May, emphasized the company’s focus on developing a comprehensive strategy over the next six months while working to stabilize farmer supplier relationships following a period when numerous producers issued cessation notices. The milk supply team successfully engaged with departing farmers, ultimately securing increased supply commitments compared to the previous year despite losing some producers while simultaneously attracting new suppliers. The net positive supply position provides operational stability as Synlait transitions toward manufacturing more advanced nutrition products that require less raw milk input.

The company is managing an orderly transition with A2Milk, which plans to diversify away from Synlait as its primary specialty milk supplier, while simultaneously onboarding multiple new advanced nutrition customers to replace lost business. This customer diversification strategy reflects Synlait’s strategic pivot toward higher-value nutritional products rather than commodity dairy processing. The shift in product mix explains why future raw milk requirements will decrease even as the company pursues growth opportunities in specialized infant formula and advanced nutrition manufacturing.