Goodman Fielder to divest biscuit unit in Australia to Green’s Food Holdings

Goodman Fielder, a manufacturer of bread and dairy products in Australia and New Zealand, has signed a deal with Green’s Food Holdings to sell its biscuits business in Australia for A$17m.

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.

Goodman Fielder CEO Chris Delaney said the transaction is consistent with the company’s strategy to focus on its core categories.

"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," Delaney said.

"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."

As part of the deal, Green’s will have a short-term licence to use the White Wings brand for biscuits.

Expected to be completed by the end of February 2014, the sale will enable Goodman Fielder to reduce net debt and further strengthen its financial position.

The company expects to record a non-cash impairment charge in the range of A$50m and A$55m in the first half of 2014.

Green’s manufactures, markets and distributes cake mixes, breakfast cereals, snacks and savoury biscuits under the Green’s, Lowan, Poppin, Waterthins and Roccas Deli brands.

---

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