Manufacturer and distributor of consumer branded foods Goodman Fielder Ltd
(ASX:GFF) has agreed to sell its commercial division edible fats and oil to Cargill for $240 million.
Cargill is an international producer and marketer of food, agricultural, financial and industrial products and services.
Goodman Fielder Managing Director Peter Margin says the sale of the edible fats and oils business to Cargill is at a significant premium to the carrying value of the business.
The company says the business did not fit comfortably with its major strategic focus and that the fund employed in this business would be better utilized elsewhere.
The sale agreement includes a 10 year supply agreement whereby Cargill will supply refined fats and oils products to Goodman Fielder in multiple formats for Goodman Fielders Home Ingredients brands and businesses.
Goodman Fielder made an after tax profit of $177.10 million in 2009.
