Coca-Cola Amatil has sold SPC to Shepparton Partners Collective for $40 million, it announced yesterday (4 June). The sale agreement also includes a four-year deferred payment which, subject to business performance, could result in up to an additional $15 million of sale proceeds at that time.
In December 2018, CCA managing director told investors of its intention to sell the business following a strategic review (F&DB 05/12/2018).
The Shepparton Partners Collective is a joint venture between Perma Funds Management and The Eights. The team has Australian and international experience in food, supply chain, finance, retail, agri-business and technology. Members of the team have previously worked with or advised Ernst and Young, Procter & Gamble, Johnson & Johnson, Cadbury’s and Kellogg. Its managing director is Hussein Rifai.
SPC managing director Reg Weine said yesterday the company welcomed the sale. The new owners committed to offering continued employment to all permanent SPC staff, he says.
“That’s great news for our team and a vote of confidence in SPC. It’s business as usual at all sites today, and we look forward to working with Shepparton Partners Collective on employment offers to our permanent staff and unlocking growth opportunities for the business as a whole.”
A four year $100 million program to modernise the Shepparton manufacturing base transformed the business, Weine says. The program started in 2014 and was a co-investment between CCA and the Victorian government.
“Investment in a new state-of-art tomato processing line has allowed us to grow our domestic 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 we see significant potential in this brand” he says.
Rifai says: “Most importantly, we believe that SPC has the right management, led by Reg, to achieve our projected three-year growth targets.”
