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

 


Goodman Fielder sells NZ meat and pizza units for up to $17M

Goodman Fielder sells NZ meat and pizza units for up to $17 mln

By Paul McBeth

Jan. 8 (BusinessDesk) - Goodman Fielder, the biggest food company in Australia and New Zealand, will net up to $17 million from the sale of its local meat and pizza businesses, as it continues to streamline its suite of brands, and will take one-time charges of up to $44 million.

The Sydney-based company will sell its meats business to Hellers, the Christchurch-based meat producer half-owned by Rangatira, and its pizza business to Papatoetoe-based Mommas Frozen Products, raising net proceeds of between $15 million and $17 million, it said in a statement. The cash will be used to repay debt.

As part of the sale of the meats unit, it will close its Frankton facility, which employs 125 people, and will pay out full redundancy if it can’t find them positions at other Goodman Fielder or Hellers sites. That will cost about $8 million in closure costs, and the company anticipates impairment charges of between $32 million and $36 million from the two sales.

“Over the past 18 months, we have successfully prioritised our product portfolio with a number of business divestments, including Integro, NZ Milling, Copperpot and most recently the Biscuits business,” chief executive Chris Delaney said. “On finalisation of the sales of Meats and Pizza businesses, we will have largely completed our divestment programme which will enable the company to focus our resources on our core categories.”

Goodman Fielder returned to profit last year after it completed a two-year restructure, selling assets and repaying debt.

The dual-listed shares fell 3.4 percent to 71.5 cents on the NZX, and were last at 66.5 Australian cents on the ASX. The stock is rated an average ‘hold’ based on 11 analyst recommendations compiled by Reuters, with a median target price of 75 Australian cents.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Media: Julian Wilcox Leaves Māori TV

Māori Television has confirmed the resignation of Head of News and Production Julian Wilcox. Mr Maxwell acknowledged Mr Wilcox’s significant contribution to Māori Television since joining the organisation in 2004. More>>

ALSO:

Genetics: New Heat Tolerant Cow Developed

Hamilton, New Zealand-based Dairy Solutionz Ltd has led an expert genetics team to develop a new dairy cow breed conditioned to thrive in lower elevation tropical climates and achieve high milk production under heat stress. More>>

Fractals: Thousands More Business Cards Needed To Build Giant Sponge

New Zealand is taking part in a global event this weekend to build a Menger Sponge using 15 million business cards but local organisers say they are thousands of business cards short. More>>

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news