Synlait aims to diversify its revenue streams through the acquisition of selected assets of New Zealand firm Talbot Forest Cheese, as the dairy processor records a full-year profit rise of 89%.

The deal includes property, plant and equipment at a new facility in the town of Temuka, New Zealand, as well as the consumer cheese brand Talbot Forest Cheese.

The investment is expected to be between NZD 30 million ($20.1 million) and NZD 40 million ($26.7 million) and Synlait will assume full management and operational control of Talbot on 1 August 2019.

Newly appointed Synlait CEO Leon Clement said: “This acquisition enhances our current portfolio, and will cement Synlait as a company with high-quality, flexible dairy manufacturing capabilities that can be tailored to meet customer needs.

“We will be able to manufacture a variety of cheese products that complement our existing product portfolio, whilst at the same time further diversifying our revenue streams.”

The announcement comes as Synlait reports a net after-tax profit of NZD 74.6 million ($49.9 million) in its full-year results, up by 89% on the year before.

In the 12 months to 31 July 2018, the New Zealand company’s revenue was up 16% to NZD 879 million ($587.9 million).

The firm has credited its solid figures to an increase in infant formula sales, which was said to be enabled by a number of investments in the blending and consumer packaging space.

Earlier this year the company announced it would will invest NZD 260 million ($188.9 million) to build a nutritional powder manufacturing site in New Zealand, its second such facility.

Synlait chairman Graeme Milne said: “This has been a milestone year for Synlait as we grew both in capability and capacity. We’re stepping up in terms of our performance, and we’re looking ahead at where we want to be.”

He added: “In November 2017 we completed our second Dunsandel wetmix kitchen, and the same month commissioned our Auckland blending and consumer packaging facility. Both these projects have allowed us to increase our finished infant formula capacity.”

Earlier this year Synlait revealed it has “significantly extended” its supply agreement with the A2 Milk Company, which it signed in 2016.