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Goodman Fielder gets A$100M for starch business

By Phil Boeyen, ShareChat Business News Editor

Tuesday 29th August 2000

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Goodman Fielder has entered into an agreement with a US company to sell its Australian and New Zealand food starch business, Starch Australasia Limited.

The US buyer is Penford Corporation, which will pay around A$100 million for the company.

Goodman Fielder chief executive, David Hearn, says his company is selling the business because it believes an international starch player can develop Starch Australasia - and Hi-maizeT - more effectively. Hi-maizeT is a corn-based food starch product that adds natural fibre to white bread, such as all McDonalds burger buns in Australia, without changing their taste or texture.

"As a leading speciality starch company based in North America, Penford Corporation will be able to leverage new regional and global opportunities for Starch Australasia."

"As a result, Goodman Fielder shareholders have received a good return on Starch Australasia and we will get the added benefit of royalty payments from future global sales of Hi-maizeT. Goodman Fielder will retain exclusive rights to Hi-maizeT in bread products throughout Australasia."

Mr Hearn says the price for the company is substantially above book value.

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