Goodman sale

FOOD and dairy company Goodman Fielder has agreed to sell its edible fats and oils operations to global food and agricultural products group Cargill for $240 million. Goodman Fielder managing director Peter Margin said the price was a significant premium to the carrying value of the business. Mr Margin said the operations did not fit comfortably with the company's focus on its consumer brands and that the funds employed would be better used elsewhere.

By InvestSMART · 11 Dec 2009

By InvestSMART ·
11 Dec 2009

FOOD and dairy company Goodman Fielder has agreed to sell its edible fats and oils operations to global food and agricultural products group Cargill for $240 million.

Goodman Fielder managing director Peter Margin said the price was a significant premium to the carrying value of the business. Mr Margin said the operations did not fit comfortably with the company's focus on its consumer brands and that the funds employed would be better used elsewhere.

"The sale of these assets will allow the company to focus on our core business, which is the manufacturing and marketing of everyday branded consumer foods," he said. The sale is subject to approval from the Australian Competition and Consumer Commission. Goodman Fielder shares were 3? lower at $1.58 yesterday.