- Coca-Cola Amatil has secured the sale of iconic Aussie canned fruit and vegetable brand SPC for $40 million
- The deal with Shepparton Partners is expected for full completion by the end of June this year
- Coca-Cola expects a profit margin from the deal to hit between $10 million and $15 million
Coca-Cola Amatil announced today the sale of well-known Aussie canned fruit and vegetable brand SPC for the price of $40 million.
The sale has been inked with Melbourne-based Shepparton Partners, a joint venture between Perma Funds Management and The Eights.
Coca-Cola stated in its media release to shareholders today it will be expecting a profit margin between $10 million and $15 million through the deal, which is slated for a June completion this year.
Coca-Cola Amatil Managing Director Alison Watkins says Shepparton Partners were chosen due to the company’s competence in commercial experience, international food operations, supply chain management and funding support.
“Shepparton Partners Collective recognises the value of SPC’s brands, the opportunities for innovation and category growth in Australia, and its export potential,” she said.
All permanent members of SPC staff will have ongoing, secure employment under the deal.
“This ensures continued access to the world-class capability and experience in fruit and vegetable processing which is brought to the company by SPC Managing Director Reg Weine and his team,” said Watkins.
The sale terms also include a four-year deferred payment which could result in an additional $15 million in sales proceeds, subject to business performance.
Perma Funds Managing Director Hussein Rifai says management will be focusing on reducing operation complexities at SPC and improving efficiency in working capital and inventory.
“We are delighted to have acquired SPC, one of Australia’s most iconic businesses. We believe there is enormous opportunity to grow this unique 100-year-old brand further domestically and internationally,” he said.
CCL shares in the Aussie market are only slightly changed today, trading at a 1.39 per cent premium. Share prices are currently sitting at $9.50 in a $6.783 billion market cap.