AUS: Goodman Fielder confirms extra payment in NZDF buy
In an announcement to the Australian Stock Exchange, Goodman Fielder has confirmed that it will pay an additional NZ$259.951m (US$183.108m) in its acquisition of New Zealand Dairy Foods Holdings after the group met revenue targets for the additional 'earn out' payment.
Under the original acquisition, unveiled in 2005, the Australian baking and food ingredients group agreed to a base payment of NZ$609.64m. The earn out payment would be rewarded to Graeme Hart's Rank Group, who owned NZDF, if the company posted an increase in annualised EBITDA of NZ$30.6m.
At the time of the initial acquisition agreement, Goodman Fielder was a wholly owned subsidiary of Burns Philip, another Hart company, which currently holds a 20% stake in Goodman Fielder after its December 2005 IPO.
NZDF is New Zealand's second largest milk and dairy producer.
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