Australasian food company Goodman Fielder is set to sell its biscuits business in Australia to Green’s Food Holdings in a A$17m deal.
The unit offers various sweet and savory biscuits including, cookies, creamies and fancies, plain and shortbreads, chocolate and crackers and its brands include Paradise, Cottage, Vive and Veri Deli.
The sale is a part of the company's strategy to optimize its portfolio by focusing on its core categories and brands, where it has profitable, market leading positions.
Goodman Fielder CEO Chris Delaney said that the biscuits business is not core to the company's grocery division and it formed the view that this business can maximize 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," Delaney added.
The deal, which is expected to be completed by the end of February 2014, also includes a short-term license to the White Wings brand to Green's for biscuits only.
Following the completion of the deal, Goodman Fielder expects a non-cash impairment charge of up to A$55m, against the biscuits business.
Green's produces a wide range of products, including cake mixes, breakfast cereals snacks and savory biscuits under the Green's, Lowan, Poppin, Waterthins and Roccas Deli brands.
Image: The sale is a part of Goodman Fielder's strategy to optimize its portfolio by focusing on core categories and brands. Photo courtesy of Gabriel Del castillo.
