FFI Holdings, the Australia-based food company, has entered into an agreement to sell the business assets of its Tradition Smallgoods meat processing arm.
The buyer of the business has not been named.
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In an announcement to the Australian Securities Exchange (ASX), on which it is listed, FFI said the Tradition Smallgoods business, which includes the production of sausages, bacon and processed meat products, will cease operations at its Jandakot site on 31 December.
FFI, which provides ingredients, products and services in categories including bakery, dairy and confectionery for the retail and foodservice channels, often on a private-label basis, told the ASX the factory’s closure is linked to a Western Australian Government compulsory land purchase.
“The taking of this land will have a significant impact on the company’s operations and will require some existing food processing-related activities to be relocated offsite,” it said.
It added that “after undertaking a complete strategic review of the various options available,” it had “entered into an agreement to sell the business assets of Tradition Smallgoods”.
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By GlobalDataFFI said it expects to recover the “carrying value of the assets sold” and will not record a profit or loss on the transaction. It said net proceeds from the transaction, including stock and working capital, will be approximately AUD2m (US$1.4m).
