GFF
23/12/2013 09:55
ASSET
REL: 0955 HRS Goodman Fielder Limited
ASSET: GFF: Divestment of Biscuits Business
ASX/NZX ANNOUNCEMENT
23 December 2013
GOODMAN FIELDER MAKES FURTHER PROGRESS ON STRATEGY TO OPTIMISE PORTFOLIO WITH
DIVESTMENT OF BISCUITS BUSINESS
Goodman Fielder has made further progress on its strategy to optimise its
product and brand portfolio, today announcing it has entered into an
agreement to sell its Biscuits business in Australia to Green's Food Holdings
("Green's").
The divestment forms part of Goodman Fielder's ongoing strategy to optimise
its portfolio by refocusing its marketing and capital expenditure on its core
categories and brands where it has profitable, market leading positions.
The Biscuits business produces a range of sweet and savoury biscuits
including cookies, creamies & fancies, plain & shortbreads, chocolate and
crackers. Major brands include Paradise, Cottage, Vive and Veri Deli.
Under the agreement, Goodman Fielder will also licence Green's to use the
White Wings brand for biscuits only for a fixed term.
Green's is an Australian food company which manufactures, markets and
distributes a range of products, including cake mixes, breakfast cereals
snacks and savoury biscuits under brands including Green's, Lowan, Poppin,
Waterthins and Roccas Deli.
Goodman Fielder CEO, Chris Delaney, said the transaction was consistent with
the company's strategy to focus on its core categories and represented the
best outcome for staff currently working in the Biscuits business.
"The Biscuits business is not core to our Grocery division and we formed the
view that this business can maximise its potential under different ownership.
"For Goodman Fielder it allows us to concentrate our internal resources and
investment on our core brands within the Grocery division where we have
profitable, category leadership positions including Spreads, Flour & Cake Mix
and Dressings & Mayonnaise."
The transaction is expected to be completed by the end of February 2014.
Total net proceeds are expected to be approximately A$17 million, including
net cash proceeds of receivables and payables of approximately A$10 million.
Net proceeds will be used to reduce net debt and further strengthen Goodman
Fielder's financial position.
As a result of the divestment, Goodman Fielder expects to record a non-cash
impairment charge after tax against the Biscuits business in the range of
A$50-55 million, which will be recorded as a significant item in the
company's FY14 interim accounts.
* * * * * * *
For further information contact:
Martin Cole
Director, Corporate Affairs
+61 2 8899 7272
End CA:00245603 For:GFF Type:ASSET Time:2013-12-23 09:55:35
