Australian food manufacturer Goodman Fielder has agreed to offload its Integro commercial oils business to local grain trader GrainCorp.
Goodman Fielder announced the A$170m (US$176.5m) deal today (28 August). The company, which is looking to revitalise its business after a challenging two years, said the sale would help it focus on “core categories and brands”.
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The bread and dairy group announced in November that Integro was one of a number of businesses that were “under review” and could be sold.
In July, US agribusiness giant Cargill pulled a bid for Integro, citing “concerns raised in the market”. It was Cargill’s second failed attempt to buy the business. In November 2010, Goodman Fielder and Cargill pulled the plug on an initial deal after regulators opposed the transaction.
Goodman Fielder said the A$165m net proceeds from its agreement to GrainCorp would “primarily” be used to reduce its debt and strengthen its balance sheet.
The deal also included a contract for GrainCorp to supply “oil and finished goods” to Goodman Fielder.
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