Synlait Milk (ASX:SM1) has completed the sale of its North Island assets to global healthcare giant Abbott.
The deal, valued at NZ$307 million, includes the Pōkeno manufacturing facility alongside its associated inventory and leasehold sites in Auckland.
CEO Richard Wyeth described the transaction as a "turning point" that allows the company to simplify its operations and refocus its recovery efforts on its foundational roots in Canterbury.
The financial injection provides immediate relief for Synlait’s balance sheet. Of the gross proceeds received overnight—totalling roughly NZ$283.1 million—the company has allocated NZ$200 million to settle existing bank facilities.
An additional US$14 million remains held back, to be released progressively subject to any post-completion claims.
The debt repayment strategy slashes Synlait’s total committed bank facilities from NZ$400 million to NZ$200 million.
The company remains cautious. Synlait acknowledged that its balance sheet has been strained by manufacturing challenges throughout FY25, and further work is required to stabilise its long-term position.
Most remaining debt facilities are set to mature on June 30, and a refinancing process is already in motion.