Burns Philp spins off bakery ingredients unit
value creation to fund future investments, spinning off its baking,
spreads and oils divisions into a separate firm.
The firm, that acquired the much larger Goodman Fielder food group two years ago in a hostile €1.2 billion takeover, said it will retain the high-multiple snack foods division, that includes the Uncle Toby's brands.
Burns Philp proposes to relist most of Goodman Fielder, through an IPO, with Burns Philp shareholders receiving a priority allocation.
"The initiative is driven by its board who believe significant value has been created and consider it appropriate to realise that capital for deployment," the firm said this week.
At the same time it announced it has made a bid to acquire New Zealand Dairy Foods from the Rank Group. The plan is to merge the dairy food group with Goodman's New Zealand operations, with the acquisition settled shortly after the IPO.
"This will facilitate the realisation of significant synergies, and provide a platform to develop the group's dairy interests," said Burns Philp.
This latest spin off follows hot on the heels of the firm's cash-boosting A$1.90 billion sale last year of its yeast and spices businesses to UK firm Associated British Foods.
The Burns Philp baking group, with brands Helga's, Wonder White and Riga, supplies packaged bread as well as baking ingredients, sweet and savoury baked products to retailers and food makers.
Its spreads and oils division includes edible oil refineries and processing facilities producing liquid and dry grocery lines.