Fonterra to gain $64 million on Mars-Goodminton deal

Company News

by Jessica Amir

US food giant, Mars has purchased a major stake in German targeted nutrition business, foodspring.

As part of this transaction, Fonterra (ASX:FSF) has sold its interest in foodspring’s parent, Goodminton A.G, and is set to see a gain on sale of $64 million.

The purchase price has not be disclosed and neither has the stake that Mars has acquired.

However, Fonterra’s Chief Operating Officer, Kelvin Wickham, says the partnership with foodspring has been an exciting early activity with the FSF’s new sports and active lifestyle business unit.

Over the past 18 months foodspring has become the fastest growing targeted nutrition brand in Europe. The health and wellness market is estimated to be $200 billion globally.

Shares Fonterra (ASX:FSF) closed 0.81 per cent lower at $3.68 yesterday.
 

Jessica Amir

Finance News Network
Jessica joined FNN in January 2017 after having worked in financial advising for seven years and in TV journalism for seven years, specialising in finance, equities and analysis. She has interviewed former Prime Ministers of Australia, Tony Abbott, Julia Gillard and Kevin Rudd and ex Treasurer Jo Hockey. Jessica has worked as a journalist with Sky News Business, ABC 1, ABC's The Business, ABC24 and has also been a regional Channel 7 and 9 TV reporter with Prime7 and Win News.