AUS: Goodman Fielder nears Integro oils sale
Cargill announced its intention to acquire the Integro business in May
Australian food manufacturer Goodman Fielder has said it expects to seal a deal to sell its Integro edible fats and oils business by the end of the month.
Goodman Fielder put Integro up for sale late last year. In May, US agribusiness giant Cargill confirmed its intent to acquire Integro, 18 months after Australia's competition watchdog had blocked its previous bid for the business.
Announcing its full-year results yesterday (14 August), Goodman Fielder said it had entered into exclusive talks with a mystery bidder, which it did not identify.
"We have received a number of offers for the Integro commercial oils business and we have now entered into a period of exclusivity with one bidder to finalise the transaction which we expect to sign by the end of August 2012," CEO Chris Delaney said.
Goodman Fielder, which is looking to revitalise its business after a challenging two years, has also put its milling business in New Zealand up for sale. Delaney said there was interest in the operations.
"We are also well progressed with the divestment of our NZ milling business and we remain in discussions with a number of interested parties," Delaney said.
Delaney said proceeds from the sales will be used to further strengthen the company's financial position and for reinvestment in the company's core brands.
Goodman Fielder this week reported it had narrowed its full-year losses, driven by cost cuts and earnings growth in Asia Pacific.
However, the company reported a net loss of A$146.9m (US$154.3m) for the year to 30 June. A year earlier, its loss stood at A$166.7m.
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