Uncategorised

Goodman Fielder to sell NZ flour milling business

Food manufacturer Goodman Fielder has announced that it is selling its Champion Flour Milling business to Japan’s Nisshin Flour Milling for $51 million.

The baking company’s sell-off of Champion, expected to take place in February next year, is in line with its strategy of narrowing its focus in an attempt to become profitable again. It reported a $146.9 million loss for 2011-2012.

“This transaction is another example of the successful execution of our strategy to divest non-core businesses to enable us to focus our capital and marketing expenditure and our internal resources on our core categories and brands,” said Chris Delaney, Goodman’s CEO.

“Together with the sale, we have also structured a long term supply partnership with Nisshin to ensure Goodman Fielder maintains an efficient supply of flour and related products for our businesses in New Zealand.”

The sale of Champion follows the sale in August of its Integro edible oil business. The following month Goodman Fielder announced that it would trim the number of its factories to 35 or fewer.

Send this to a friend