Goodman Fielder Limited
(ASX:GFF) has inked a deal to sell its Champion flour milling business in New Zealand for about $40 million to Japan’s largest milling company, Nisshin Seifun Group Inc.
The breads and spreads manufacturer decided to divest the business as part of its strategy to focus on its core categories and brands.
CEO Chris Delaney says Goodman Fielder has also structured also structured a long term supply partnership with Nisshin to ensure an efficient supply of flour and related products for its business in New Zealand.
The transaction is expected to be completed in February 2013 and proceeds will be put to repay debt and strengthen the company’s balance sheet.
Goodman Fielder narrowed its net loss by 12 per cent to $139.9 million in the 2012 financial year.
