Shares in Goodman Fielder rose 2 cents (2.94%) on Tuesday after the company said it planned to sell its Integro edible fats and oil business for $A170 million to a consortium comprising GrainCorp and Gardner Smith.
The Australasian food company says the sale does not include the out-of-home business in Australia, or Goodman Fielder's Asia Pacific fats and oils business.
It will book a pre-tax profit of around $25 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's brands include Vogels, Meadowlea and Edmonds but it is closing plants and axing jobs to combat falling sales amid intense competition from cheaper private labels in its baking, home ingredients and dairy divisions.
It reported a narrower full year loss of $A146.9 million earlier this month.