Goodman Fielder sells edible oil unit to Cargill
Cargill Inc., US biggest privately owned company, agreed to buy Goodman Fielder Ltd.'s edible oils unit for A$240 million (US$ 219.7m).
As part of the deal, Cargill will supply refined oils to Goodman Fielder under a 10-year contract, the Sydney-based company said in a statement.
The oils business is Goodman’s second-biggest after its bakeries. The sale of these assets will allow the company to focus on its core business which is the manufacturing and marketing of everyday branded consumer foods, according to CEO Peter Margin.
The profitability of Goodman’s oils business has shrunk in the past 12 months, according to Bloomberg. Its profit margin narrowed to 9.7% in the year through June 30, from 13.9% a year earlier.
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