The a2 Milk Company and Synlait Extends Supply Agreement

  • Nov 19, 2019 AEDT
  • Team Kalkine

Synlait Milk Limited has renegotiated aspects of its thorough manufacturing and supply arrangements with The a2 Milk Company (ASX: A2M), which has strengthened the companies’ long-term partnership.

Key Highlights of Revised Agreement:

  • A two-year increase to the term of the agreement, essentially providing for a new minimum term to, at the earliest, 31 July 2025;
  • An increase in the volume of nutritional products over which Synlait already has exclusive supply rights;
  • Increased committed production capacity from Synlait;
  • Pricing terms that reflect the dedication on the part of both companies to an ongoing market competitive pricing regime.

At AEST 01:16 PM, the stock was trading at $13.500 per share, up by 12.313% from its previous close.


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