Goodman Fielder divests Australian biscuit unit

Goodman Fielder, a manufacturer of bread and dairy products in Australia and New Zealand, has completed the sale of its biscuits business in Australia to Green’s Food Holdings.

The sale is in line with the company’s efforts to optimise its portfolio by refocusing on its core categories and brands where it has profitable, market-leading positions.

The company intends to use the proceeds from the sale to pay off debt and strengthen its financial position.

The biscuits unit produces a wide range of sweet and savoury biscuits, including cookies, creamies and fancies, plain and shortbreads, chocolate and crackers under the Paradise, Cottage, Vive and Veri Deli brands.

Green’s is engaged in the manufacturing and sale of cake mixes, breakfast cereals, snacks and savoury biscuits under the Green’s, Lowan, Poppin, Waterthins and Roccas Deli brands.

An agreement for the transaction was signed in December 2013.

Goodman Fielder CEO Chris Delaney said at the time, "The Biscuits business is not core to our Grocery division and we formed the view that this business can maximise its potential under different ownership.

"For Goodman Fielder it allows us to concentrate our internal resources and investment on our core brands within the Grocery division where we have profitable, category leadership positions including spreads, flour and cake mix and dressings and mayonnaise."

The company, meanwhile, signed a deal in January to sell its meat and pizza units in New Zealand to Hellers and Mommas Frozen Products.

Goodman produces bread, milk, margarine, flour, dressings, condiments, mayonnaise, frozen pastry, cake mix, desserts, sauces, vinegar and cooking oil under the MeadowLea, Praise, White Wings, Pampas, Mighty Soft, Helga’s and Wonder White brands, among others.

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Image: Goodman Fielder’s biscuit unit produces sweet and savoury biscuits, including cookies, creamies and fancies. Photo courtesy of Paul at FreeDigitalPhotos.net.