Cargill agrees to buy Goodman Fielder edible oils unit for A$240 million

Cargill Inc., the biggest U.S. privately owned company with annual sales of US$117 billion, agreed to buy Goodman Fielder Ltd’s edible oils unit for A$240 million.

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 today. The oils business is Goodman’s second-biggest after its bakeries.

“The sale of these assets will allow the company to focus on our core business which is the manufacturing and marketing of everyday branded consumer foods,” said chief executive Peter Margin.

Shares of Goodman fell 0.9% to A$1.59 on the ASX today and have gained 18% in the past six months.

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.

Businesswire.co.nz

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