GRAINCORP has sold its 60 per cent share in flour supplier Allied Mills to Pacific Equity Partners (PEP) for $190 million.
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GrainCorp’s joint venture partner Cargill Australia has also sold its 40 per cent interest to PEP.
“The interest shown by PEP to acquire full control of Allied Mills provided us with an excellent opportunity to realise the value in Allied and create balance sheet flexibility for the future,” managing director and chief executive officer Mark Palmquist said.
GrainCorp’s share in Allied Mills was acquired from Goodman Fielder in 2002 and has a book value at 30 September 2016 of $178 million.
Allied Mills’ Marius St site in Tamworth is currently undergoing an upgrade worth $21 million.
