By Sean Doherty,Manufacturing Commentator | NZ Industry Trends

Global investment is reshaping the future of Kiwi manufacturers—and the outlook is surprisingly positive.

It has been a historic couple of years for New Zealand’s manufacturing and food processing sectors. From Invercargill to Auckland, a remarkable string of large manufacturing companies have been acquired by overseas buyers—or are in the process of changing hands.

Fonterra’s consumer brands, Alliance Group, Synlait Milk, MHM Automation, Robotics Plus, Bremworth, Rakon, and a host of others have all attracted international attention.

At first glance, headlines about foreign buyers snapping up New Zealand businesses can feel unsettling.

The instinct is to ask: are we losing jobs and intellectual property? But when you dig into the details, a more encouraging picture emerges — one of fresh capital, global market access, jobs protected, and innovation accelerated.

Here’s what’s really going on, and why there’s reason to be optimistic.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The world wants what we’ve built

The sheer scale of interest in New Zealand companies tells a story of success, not failure. In the third quarter of 2025 alone, 52 deals were announced, a 41 percent increase on the same period a year earlier.

International investors from France, Ireland, the United States, Japan, South Korea, Switzerland, Australia, and Sri Lanka have all been writing cheques.

Why? Because New Zealand companies have built something genuinely valuable. Robotics Plus, a Tauranga-based agricultural robotics company, attracted Yamaha Motor—one of the world’s leading industrial conglomerates—because its autonomous orchard vehicles and AI-powered systems are among the best in the world.

Yamaha has now made Robotics Plus part of the foundation of its new global agricultural automation company, Yamaha Agriculture Inc. That’s not a loss. It’s a global validation of Kiwi ingenuity.

Similarly, Christchurch’s MHM Automation caught the eye of Fortifi Food Processing Solutions because its post-harvest, protein processing, and packaging automation systems were world-class. Fortifi’s CEO said the acquisition “further strengthens Fortifi’s capabilities” and “establishes an even stronger local presence in the Asia-Pacific region.”

When buyers pay a premium above the market price, they’re paying for excellence.

Capital that was desperately needed

Some of these deals aren’t just strategic—they’re existential. New Zealand’s relatively capital-constrained market means many manufacturers eventually hit a ceiling.

They’ve built something exceptional, but growing further requires investment beyond what local owners or banks are willing to provide.

Alliance Group is the prime example. New Zealand’s largest processor and exporter of sheep meat had been working for two years to reset and recapitalise.

 When Ireland’s Dawn Meats invested $250 million for a 65 percent stake, approximately $188 million went straight to reducing Alliance’s working capital debt, $20 million into strategic capital expenditure, and up to $40 million was distributed back to farmer-shareholders. Alliance’s chief executive, Willie Wiese, was direct:

“This investment provides the capital we need to strengthen our balance sheet, accelerate value growth initiatives, and further enable the delivery of our strategic objectives.”

Synlait Milk faced a similar challenge. Bright Dairy’s $185 million recapitalisation in 2024 was critical to repaying $180 million in maturing bonds—essentially keeping the lights on. The subsequent $307 million sale of Synlait’s North Island assets to Abbott Laboratories provides further financial stability and strengthens their long-term relationship with a Fortune 500 healthcare company.

Auckland precision manufacturer Accord Precision was rescued from the brink of administration in December 2025 when EverEdge Capital stepped in, saving jobs. Without that acquisition, the business would have closed.

The uncomfortable truth is that many of these companies needed capital urgently that simply wasn’t available domestically.

Access to global markets and customers

Perhaps the most exciting outcome of these acquisitions is the doors they open. New Zealand sits at the bottom of the world, thousands of kilometres from its major markets. Getting products to customers in Europe, North America, and Asia is expensive and logistically complex.

Fonterra’s $3.85 billion sale of its consumer brands (Anchor, Mainland, Kāpiti) to France’s Lactalis puts iconic Kiwi brands into a global distribution machine that expands reach to virtually every corner of the planet.

Critically, Fonterra retains its core ingredients business and has locked in a long-term milk supply agreement with Lactalis, meaning Kiwi farmers keep supplying the milk.

MHM Automation now operates as part of Fortifi’s platform across more than 15 countries and five continents.

Robotics Plus has become part of Yamaha’s global precision agriculture strategy.

When Dawn Meats partnered with Alliance Group, it didn’t just bring capital. Dawn Meats is one of Europe’s largest red meat processors, with a deep distribution network across the UK and EU.

As Dawn Meats’ CEO Niall Browne put it: “Having the ability to grow in partnership with some of New Zealand’s leading farmers and create a year-round supply for our customers between the Northern and Southern Hemispheres is a fantastic opportunity.” Northern and Southern Hemisphere seasons complement each other perfectly—Alliance can supply lamb, beef, and venison when European producers can’t, and vice versa.

Bremworth’s proposed acquisition by Mohawk Industries—the world’s largest flooring company—would give its premium New Zealand wool carpets access to a distribution network that spans 170 countries.

These are not stories of retreat. They are stories of expansion.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

From uncertainty to opportunity: Employment outcomes

The fear with any acquisition is job losses. Yet in most of these transactions, employment has been maintained or is set to grow. When Fortifi acquired MHM Automation, all employees were retained and the Christchurch operations continued. MHM’s subsidiary WYMA Engineering had just expanded into new premises and continued to grow. Fortifi’s stated strategy centres on using MHM as its Asia-Pacific hub—which means more work, not less.

When Ingham’s Group acquired Bostock Brothers in Hastings for $35.3 million, it acquired the brand, three freehold farms, and the processing plant—keeping New Zealand’s only certified organic chicken producer operating in Hawke’s Bay.

Alliance Group’s processing plants across New Zealand remain operational under the Dawn Meats partnership, with $20 million in new strategic capital investment committed. The farmer-shareholders retain 35 percent ownership and continue to influence governance.

Even Accord Precision’s rescue sale to EverEdge Capital preserved skilled manufacturing jobs that were days from being lost.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Innovation Gets a Turbo-Charge

For technology-focused companies, acquisition by a well-resourced global parent can supercharge innovation.

Robotics Plus will now leverage Yamaha Motor’s expertise in factory automation, precision robotics, and advanced manufacturing to accelerate the development of its autonomous orchard vehicles and AI-powered agricultural tools.

Co-founder Steve Saunders described the partnership “With Yamaha’s support, we are poised to accelerate our robotics innovations, significantly scale our hardware manufacturing, and expand further into key markets such as the US, and beyond.”

Auckland-based Rakon, a world leader in frequency control and timing technology used in telecommunications, defence, and space applications, has received a takeover offer from US electronics manufacturer Bourns at a premium to its share price.

If completed, Rakon would gain access to Bourns’ global sales channels and R&D resources while continuing to manufacture from New Zealand.

A weaker dollar means attractive prices

There’s a practical reason why now, specifically, there is such a surge. The New Zealand dollar has been relatively weak against the US dollar, making Kiwi businesses significantly more affordable for offshore buyers. Legal advisers MinterEllisonRuddWatts noted that “stabilising interest rates and a weaker NZ dollar attracted offshore buyers” in 2025, driving average deal sizes higher.

At the same time, New Zealand’s government has signalled it is open for business. The Simpson Grierson Expanding Horizons M&A Report 2025 found that 78 percent of international investors said global uncertainty had strengthened their intentions to invest in New Zealand, and 76 percent considered current government policies supportive of foreign investment. New Zealand’s political stability, strong rule of law, and clean-green brand continue to be powerful drawcards.

What to watch for

Not every acquisition ends happily. Manufacturers such as Fisher & Paykel Appliances, Cadbury’s Dunedin operation, and Mars Petcare saw some or all of their production shifted offshore after acquisition, resulting in the loss of approximately 688 manufacturing jobs across the three businesses. This has helped fuel a perception that manufacturing acquisitions inevitably lead to job losses. In reality, the outcome is usually driven by the specifics of the deal and the reasons the purchaser believes the business holds value.

A clear pattern emerges: when a New Zealand manufacturer owns a genuinely specialised niche—products, capabilities, or technology that can’t easily be replicated elsewhere—it is more likely to survive and grow under new ownership.

The risk is greatest when a company produces more generic goods that can be made more cheaply in the acquiring company’s home market or other low-cost jurisdictions.

There is also the question of profits leaving the country. While wages, PAYE, and supply-chain spending remain local, profits that are not reinvested in New Zealand can flow offshore. Over time, this can place additional pressure on New Zealand’s current account.

For manufacturing businesses, the priority is ensuring the skills, innovation, and supply chains that make these companies attractive in the first place continue to be developed and anchored here in New Zealand.

The bigger picture

New Zealand’s manufacturers are not being sold off because they’ve failed. They’re being acquired because they’ve succeeded—building world-class products, technologies, and brands in a small market at the edge of the world.

The fresh capital flowing in is reducing debt, funding new equipment, and opening global doors that were previously closed. Jobs are being retained. Innovation is being accelerated.

Kiwi brands are reaching customers that New Zealand companies could never have reached alone.

The challenge for the sector, and for New Zealand as a whole, is to keep building the next generation of companies worth acquiring and to ensure the conditions exist for those that stay locally owned to thrive as well.

If the past two years are any guide, the world will keep coming to us. That’s something to be proud of.

The deals referenced in this article span 2024–2025 and include transactions that are completed, conditional, or in progress as at February 2026.