In a bid to offload non-core assets, Australian food group Goodman Fielder has exited its biscuit business at a loss of $55 million, according to the company. The said business was sold to Green's Foods for $17 million, according to The Sydney Morning Herald (SMH).
Chris Delaney, chief executive of Goodman Fielder, said of the transaction: "It allows us to concentrate our internal resources and investment on our core brands within the grocery division where we have profitable, category leadership 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.''
In recent years, Goodman has been under pressure amid a vicious price war between Woolworths and Coles. The firm's grocery division posted a revenue of $540.6 million in 2012 to 2013, a 7$ drop, the report stated.
The biscuit deal is expected to be closed by February. After this transaction, Green's will become the biggest Australian-owned biscuit firm, SMH reported.
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