Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Goodman Fielder sells Champion milling to Nisshin Flour

Goodman Fielder sells Champion milling to Japan's Nisshin Flour for $51 mln

Dec. 7 (BusinessDesk) - Goodman Fielder, the unprofitable food ingredients maker, has sold its New Zealand Champion milling to Japan's Nisshin Flour Milling for $51 million.

The Australasian food manufacturer sold its Integro unit for A$170 million in August, and has been looking for a buyer of its milling unit since February after receiving unsolicited offers for both groups. The milling sale is expected to be completed in February, and includes a long-term supply contract for Goodman Fielder, which retains the business to sell flour to retailers, in-store bakeries and hot bread shops, it said.

"This transaction is another example of the successful execution of our strategy to divest non-core businesses to enable us to focus our capital and marketing expenditure and our internal resources on our core categories and brands," chief executive Chris Delaney said in a statement. "This transaction builds on our other recent initiatives to ensure our group financial position is sufficiently strong and flexible to enable us to pursue our strategic agenda."

The food ingredients maker put Integro and its New Zealand milling units on the block, after successive writedowns in the value of its business, in a bid to cut its level of debt and bolster its balance sheet. The competitive retail environment and rising cost of raw materials has put its operation under strain and led to a rationalising of its businesses.

Goodman Fielder wrote A$42.5 million from the value of its milling operation in the 2012 financial year, and the unit made a loss before interest and tax of A$32.8 million, compared to earnings before interest and tax of A$6.2 million a year earlier.

The dual-listed shares fell 1.2 percent to 85 cents on the NZX, and have rallied 45 percent this year.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Interest Rates: Wheeler Hikes OCR To 3% On Inflationary Pressures, Eyes Kiwi

Reserve Bank governor Graeme Wheeler lifted the official cash rate for the second time in as many months, saying non-tradable inflationary pressures were "becoming apparent" in an economy that’s picking up pace and he's watching the impact of a strong kiwi dollar on import prices. More>>

ALSO:

Scoop Business: Equity Crowd Funding Carries Risks, High Failure Rate

Equity crowd funding, which became legal in New Zealand this month, comes with a high risk of failure based on figures showing existing forays into social capital have a success rate of less than 50 percent, one new entrant says. More>>

ALSO:

Scoop Business: NZ Migration Rises To 11-Year High In March

The country gained a seasonally adjusted 3,800 net new migrants in March, the most since February 2003, said Statistics New Zealand. A net 400 people left for Australia in March, down from 600 in February, according to seasonally adjusted figures. More>>

ALSO:

Hugh Pavletich: New Zealand’s Bubble Economy Is Vulnerable

The recent Forbes e-edition article by Jesse Colombo assesses the New Zealand economy “ 12 Reasons Why New Zealand's Economic Bubble Will End In Disaster ”, seems to have created quite a stir, creating extensive media coverage in New Zealand. More>>

ALSO:

Thursday Market Close: Genesis Debut Sparks Energy Rally

New Zealand stock rose after shares in the partially privatised Genesis Energy soared as much as 18 percent in its debut listing on the NZX, buoying other listed energy companies in the process. Meridian Energy, MightyRiverPower, Contact Energy and TrustPower paced gains. More>>

ALSO:

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news