Food producer Goodman Fielder is selling its biscuits business in Australia to Green’s Foods, generating proceeds of $17 million.
But the company will record a non-cash impairment of between $50 million and $55 million in its half year accounts as a result of the sale.
The business produces sweet and savoury biscuits, with brands including Paradise, Cottage, Vive and Veri Deli.
Goodman Fielder chief executive Chris Delaney said the transaction was consistent with the company’s strategy of focusing on core categories and brands.
Goodman Fielder also produces spreads, flour and dressings, with brands including MeadowLea, Olive Grove and White Wings.
“The biscuits business is not core to our grocery division, and we formed the view that this business can maximise its potential under different ownership,” Mr Delaney said.
The transaction is expected to be completed by the end of February 2014.