Gelatin sale boosts Goodman Fielder coffers

GMF has entered into a conditional sale agreement with a private German gelatin company, DGF Stoess, for Leiner Davis Gelatin.

Leiner Davis employs around a thousand people and has production sites in Australia, New Zealand, South Africa, the United States, Mexico, Argentina, and Brazil. The sale, which will make DGF Stoess the leading global producer of gelatin, is subject to regulatory approval including anti-trust review in the United States.

Goodman Fielder boss, David Hearn, says the sale of the gelatin business is consistent with the objectives of a group-wide strategic review to be announced next month.

"The sale of Leiner Davis is a good outcome for Goodman Fielder because it will simplify the business and allow us to focus on other opportunities to accelerate operating performance and improve returns to shareholders.

"The sale proceeds will also facilitate a new approach to capital management that Goodman Fielder will announce in the next few weeks as part of its group-wide strategic review."

Mr Hearn has also announced that Goodman Fielder plans to sell its specialty ingredients business, Germantown, in the final phase of its program to completely exit its international ingredients operations.

"Following strong, unsolicited expressions of interest from many potential buyers in the last 12-18 months, Goodman Fielder has decided to sell its Germantown specialty ingredients business through public auction later this year."

Mr Hearn says Germantown is the leading value-added specialty ingredients business in the America's and Asia Pacific region and offers unique technology and market positions for potential owners.

Last year GMF sold its starch business to US company Penford Corporation for around A$100 million.

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