The sale of SPC fruit and processing business has been completed. Coca-Cola Amatil made the announcement on 1July, with the sale completed on 28 June.
Taking into account forecasted working capital balances, working capital adjustments to the sale price and costs of disposal, Amatil is expected to record a profit on sale of approximately $14 million. The sale agreement also includes a 4-year earnout structure which, subject to business performance, could result in up to an additional $15 million of sale proceeds at that time.
Amatil announced the sale to the Shepparton Partners Collective on 4 June (Food & Drink Business 05/06/2019). 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.
In December 2018, Amatil managing director Alison Watkins told investors of its intention to sell the business following a strategic review (Food & Drink Business 05/12/2018). Amatil commenced the divestment process and received transaction advice from Kidder Williams Limited and legal advice from Gilbert + Tobin Lawyers.
Amatil acquired SPC in 2005. It invested around $250 million including in technology, operational and energy efficiencies, and new equipment. A $100 million co-investment program from 2014 to 2018 also modernised SPC’s tomato and snack cup production and introduced a new aseptic fruit processing system and pouch line at the Shepparton site.
Watkins says SPC has been a “much-loved part of our portfolio" and "we’re confident it has a bright future in the hands of its new owners.”
