Goodman Fielder chief executive officer Chris Delaney said the transaction was in line with the company's strategy to optimize its portfolio by focusing on its core categories.
"This divestment enables us to concentrate our investment and internal resources on our core categories and brands. We have also structured a long term supply partnership with GrainCorp to ensure Goodman Fielder maintains an efficient supply of strategic raw materials," Delaney added.
Following the acquisition, Goodman will enter a long-term partnership with Graincorp for the supply of oil and finished goods.
Goodman Fielder expects to generate an estimated profit on the sale of A$25m ($25.97m) before tax, which will be used to primarily reduce debt and further strengthen the company's balance sheet.
The deal, which is subject to New Zealand employee consultation requirements, is expected to be completed in October 2012.
By this time, GrainCorp is expected to complete its acquisition of private oilseed crusher Gardner Smith for A$472m ($490.47m). Following this, GrainCorp will combine Gardner Smith and Integro oils business to create a mega oil business.
