Goodman Fielder sells Integro business

Goodman Fielder has announced plans to sell Integro, its commercial oils business, for $170 million. The company has entered into an agreement with GrainCorp and Gardner Smith and anticipates the sale will be completed by early October.

The acquisition does not include the out-of-home business in Australia nor Goodman Fielder’s Asia-Pacific fats and oils business.

“We are very pleased with the outcome of this transaction. As we first indicated to the market in November 2011, Integro is a well-performing business; however, given our focus on retail branded categories, it is not core to Goodman Fielder,” said Goodman Fielder CEO Chris Delaney.

“This divestment enables us to concentrate our investment and internal resources on our core categories and brands. We have also structured a long-term supply partnership with GrainCorp to ensure Goodman Fielder maintains an efficient supply of strategic raw materials.”

GrainCorp will supply oil and finished goods to Goodman Fielder in a long-term partnership. Goodman Fielder anticipates this will deliver a more efficient manufacturing supply chain.

“We have a strong existing relationship with Gardner Smith and GrainCorp, who together offer a secure, vertically integrated partner for the ongoing supply of edible fats and oils to our business,” Delaney said.

“This transaction is also a positive result for the staff at Integro. The combination of GrainCorp’s expertise along the grain supply chain and Gardner Smith’s oils expertise offers significant opportunities to support Integro’s continued growth in the region.”

The company will further outline its strategic plan on 3 September at an investor day.