Milling & Baking News - January 7, 2014 - 16

International 

Goodman Fielder to divest
savory biscuits business
NORTH RYDE, N.S.W. - Green's
Food Holdings, an Australian food
company that makes and distributes
cake mixes, breakfast cereals, snacks
and savory biscuits, has agreed to buy
the biscuit division of Goodman Fielder Ltd. for approximately A$17 million
($15.1 million), including net cash proceeds of approximately A$10 million.
Goodman's biscuit business comprises a range of sweet and savory biscuits,
including cookies, creamies and fancies,
plain and shortbreads, chocolate and
crackers. Major brands include Paradise,
Cottage, Vive and Veri Deli. In addition
to the above brands, Green's has acquired the license to use the White Wings
brand for biscuits for a fixed term.
In divesting its biscuit business,
Goodman said it is following through
on its strategy to refocus its marketing
and capital expenditure on its core categories and brands where it has profitable, market leading positions.
"The biscuits business is not core to

our grocery division, and we formed
the view that this business can maximize its potential under different
ownership," said Chris Delaney, chief
executive officer of Goodman Fielder.
"For Goodman Fielder it allows us
to concentrate our internal resources
and investment on our core brands
within the grocery division where we
have profitable, category leadership

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16 / January 7, 2014 Milling & Baking News

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positions, including spreads, flour
and cake mix and dressings and mayonnaise."
Net proceeds from the transaction
will be used to reduce net debt and
further strengthen Goodman Fielder's
financial position. The company said
it expects to record a non-cash impairment charge after tax of about A$50
million to A$55 million.
The transaction is expected to be
completed by the end of February 2014.
Once completed, the acquisition
will make Green's the largest Australian-owned biscuit company. The
company's brands include Green's,
Lowan, Poppin, Waterthins and Roccas Deli. MBN

Cargill strengthens
Russian footprint
MOSCOW - Cargill has acquired a minority shareholding in a deep sea port
terminal in Novorossiysk on the Black
Sea in Russia. The investment includes
a 25% plus one share indirect interest
from DeloPorts Ltd. in its subsidiary,
OAO Kombinat Stroykomplekt (KSK).
"This strategic investment is in
line with our intention to grow our
operations in Russia," said Andreas
Rickmers, head of Cargill's grain and
oilseeds operations in Europe. "It is
our first investment in a Russian port
on the Black Sea and will strengthen
our offering to the market, providing
a channel to connect our Russian grain
operations to the rest of the world."
The KSK facility has the capacity to
handle 3.5 million tonnes of grain per
year. Cargill said it plans to use a portion of the volume capacity and the
remaining volume will be available in
the market. Cargill also will continue
to use various port facilities throughout the Black Sea region to serve its
customers around the world.
The investment comes just a few
months after Cargill announced it has begun building a new sunflower oil crush
plant in the Volgograd region of southern Russia. The port will add to Cargill's
global network of grain and port facilities, including a joint venture in the Romanian port of Constantza on the Black
Sea. It also will allow the company to better leverage its global operations.
"This investment is mutually beneficial for the parties involved," said
Natalia Orlova, Cargill's country representative and head of its food business
in Russia. "It is an important element of
our growing footprint in Russia, where
we have been operating since 1991." MBN
bakingbusiness.com / world-grain.com

http://www.DakotaSpecialtyMilling.com http://www.bakingbusiness.com http://www.world-grain.com

Milling & Baking News - January 7, 2014

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