10 Dec 2009

Goodman to sell division to Cargill

2:02 pm on 10 December 2009

Goodman Fielder is to sell its edible fats and oils operations to global food and agricultural products group Cargill for $A240 million.

Goodman Fielder managing director Peter Margin says the sale price is a significant premium to the carrying value of the business.

The deal includes a 10-year supply agreement under which Cargill will supply refined fats and oils products to Goodman Fielder's Home Ingredients brands and businesses.

Goodman's flour milling operations in New Zealand are not part of the sale.

The deal requires regulatory approval.

The Australasian food company is focusing on strengthening its portfolio of consumer products, which includes Nature's Fresh bread, MeadowFresh milk and Chesdale cheese.