Coca-Cola Amatil has announced the sale of its SPC fruit and vegetable processing business to Shepparton Partners Collective and its group of companies for $40 million, payable at completion.
The sale, which concludes a review and divestment process commenced in August 2018, also includes a four-year deferred payment which, subject to business performance, could result in up to an additional $15 million of sale proceeds.
Group Managing Director of Coca-Cola Amatil Alison Watkins said the sale is expected to conclude before the end of June, adding that the new owners had committed to offering continuing employment to all SPC’s permanent staff.
“This outcome is good news for SPC and good news for the Goulburn Valley,” Ms Watkins continued.
“Shepparton Partners Collective recognises the value of SPC’s brands, the opportunities for innovation and category growth in Australia, and its export potential.
“Importantly, they’re also committed to offering ongoing employment to all permanent members of the SPC team. 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. “
Mr Weine said the transaction will allow SPC to ‘continue its transformation and pursue new opportunities’ in both domestic and international markets.
“In recent years we’ve grown our market share in tomatoes and we recently launched Australia’s first organic canned tomato. Our award-winning functional food range – ProVital™ continues to grow and gain support with dieticians and our enhanced processing and automation capability has opened up new export markets” Mr Weine said.
“We’re proud of those achievements and we’re confident we can do more. On behalf of the team in Shepparton, thanks to Coca-Cola Amatil for their support and significant investment since 2005 and I look forward to working with Shepparton Partners Collective to pursue growth and innovation at SPC.”