Goodman Fielder is planning to sell its Integro edible fats and oil business for $A170 million to a consortium comprising GrainCorp and Gardner Smith.
The Australasian food company will book a pre-tax profit of around $A25 million on the deal, which Goodman says will significantly reduce its debt.
As part of the deal, GrainCorp will supply oil and finished goods to Goodman Fielder.
The company, whose brands include Vogels, Meadowlea and Edmonds, is closing plants and cutting jobs to combat falling sales amid intense competition from cheaper private labels in its baking, home ingredients and dairy divisions.
Earlier this month, it reported a full year loss of $A146.9 million.