Fonterra sells Aussie yogurt and dessert business after writedown
Sale part of Fonterr's broader shift in its Aussie business
Fonterra [NZX: FCG] has sold its Australian yoghurt and dairy dessert business to Parmalat Australia for an undisclosed sum, having written it down by $108 million.
The transaction was disclosed as part of a broader shift in Fonterra's Australian business, which is expected to return to profit next year, the cooperative says.
The deal is subject to regulatory and other approvals, and is expected to be completed in the first half of next year.
"Our Australian operations have particular ingredient strengths in cheese, whey and nutritionals, complemented by our strong consumer and food-service businesses," says chief executive Theo Spierings.
"As a key part of our multi-hub strategy, we are matching these strengths with the opportunities across our 100 markets."
Australia has been a problematic market for Fonterra for several years due to fierce competition for milk supply, too many brands and an over-capacity in production.
That prompted the cooperative to embark on a plan to turn around the performance, which has included the sale of Fonterra's stake in Bega Cheese, the striking of a deal with Bellamy's Australia to manufacture infant formula, and the merger of New Zealand's consumer brands with the Australian segment under the direction of Oceania managing director Judith Swales.
Units of the Fonterra Shareholders' Fund were unchanged at $5.77, and have decreased 4% this year.
(BusinessDesk)
Paul McBeth
Wed, 16 Dec 2015
Wed, 16 Dec 2015
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Fonterra sells Aussie yogurt and dessert business after writedown
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