Australian food manufacturer Goodman Fielder said on Wednesday it will sell its New Zealand meat and pizza businesses, raising net proceeds of NZ$15 million to NZ$17 million ($12 million-$14 million) which would be used to reduce net debt.
The company said it would sell its meat business to Hellers Ltd. while Mommas Frozen Products Ltd. had agreed to purchase its Pizza business. Both buyers are New Zealand companies.
"Our strategic commitment is to focus our capital and marketing expenditure on our core categories and our Meats business is not core to Goodman Fielder," CEO Chris Delaney said in a statement.
"The proposal to sell also reflects the very difficult trading environment and market conditions which have existed for the Meats business for some time."
As part of the plan, Delaney said Goodman Fielder would close its meat processing plant in Hamilton. ($1 = 1.2080 New Zealand dollars)
