By Phil Boeyen, ShareChat Business News Editor
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Thursday 16th August 2001 |
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Copenhagen-based Danisco, which is one of the world's largest food ingredients producers with 15,000 employees worldwide, says the purchase will provide it with the missing Australia/New Zealand platforms in the Asia Pacific arena.
Goodman Fielder boss, David Hearn, says the sale of GF Ingredients division is in line with the company's strategic action plan announced earlier this year to focus on building a retail branded businesses in Australasia.
"We have now completed the divestment of Starch Australasia and Germantown.
"We have also announced the sale of Leiner Davis gelatin subject to Federal Trade Commission approval in the United States. The divestment of these businesses will allow Goodman Fielder to become a focused retail business."
The company says although gaining FTC approval for the Leiner Davis sale to is proving to be a lengthy and complex process, in the interim the business is making a significant contribution to group earnings as a result of the rebound in global gelatin prices and ongoing productivity initiatives.
Chief financial officer, Grant Logan, says the Germantown sale proceeds could play an important part in meeting the company's commitment to a capital return.
"We are actively considering how and when we will deliver a capital return and we expect to make an announcement shortly."
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