Sale of Leiner Davis Gelatin is still on track
business, is being sold to Germany's SGF Stoess AG for $310
million.
Leiner Davis Gelatin, Goodman Fielder's international gelatine business, is being sold to Germany's SGF Stoess AG for $310 million. Goodman Fielder, Australia's largest food company, plans to use the proceeds to fund a $200 million share buyback. A spokeswoman said negotiations with the US Federal Trade Commission were taking longer than expected, but the sale was still expected to be finalised this year. "We have said it will be the second half of the calendar year and it is still on track for that," she said. The share buyback was also expected this year, she said. The Australian Financial Review reported Goodman Fielder originally expected the sale would be completed by June or July this year. According to the Australian Financial Review, the Commission is looking at foreign ownership issues and the impact on competition in the North American gelatine market.
