Food product manufacturer Goodman Fielder (ASX:GFF) has arranged to sell its edible fats and oils operations to US conglomerate Cargill for $240 million.
Goodman Fielder MD Peter Margin said the business, which will be sold at a substantial premium to its carrying value, was not a comfortable fit with its strategic focus.
“As a consequence of our decision earlier this year to focus on our consumer brand portfolio, we decided that, as a commercial industrial business, it did not fit comfortably,” he said.
As part of the arrangement, Goodan Fielder has signed a 10-year supply agreement with Cargill over the supply of refined fats and oils.
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