SPC Global, Original Juice and Nature One set to merge
The Original Juice Company, SPC Global, and Nature One Dairy have announced a transformational merger to form a major Australian food and beverage company.
Transaction snapshot
Deal value: N/A
Deal multiples: N/A
Deal type: Merger
Investors: The Original Juice Company, SPC Global, Nature One Dairy
The merger brings together three established Australian businesses, combining iconic household brands and creating a company with significant scale in the food and beverage sector.
Robert Iervasi, former Asahi Beverages Group CEO and current SPC Director, will lead the merged entity as Managing Director. The new company will operate three business divisions: SPC, The Original Juice Co., and Nature One Dairy.
SPC, an iconic Australian brand, is the country's largest producer of fruit, tomato, baked beans, and spaghetti products. The Original Juice Company specialises in chilled fruit and vegetable juices, while Nature One Dairy manufactures premium infant formula and milk powder products.
The combined business aims to support Australian producers and execute a global growth strategy. It's expected to generate more than $400 million in revenues and over $29 million in EBITDA for FY25.
Key details of the merger include:
The Original Juice Company will acquire SPC Global and Nature One Dairy's powdered milk business.
OJC will issue 133 million shares to SPC shareholders and up to 29 million shares plus $6 million cash to Nature One Dairy shareholders.
Post-merger ownership: OJC (15.5%), SPC (69.2%), and Nature One Dairy (15.3%).
The combined business will list on the Australian Stock Exchange under the code SPG.
The transaction is set to complete in November 2024.
The merger is seen as a critical step in advancing SPC's global strategy since its divestment from Coca-Cola Amatil. Hussein Rifai, the new chairman, emphasised the goal of creating "better, healthier food for the future" and establishing a strong domestic foundation before expanding into key international markets, particularly in Asia.
This strategic move aims to leverage synergies between the companies, enhance distribution channels, and create a platform for future growth in both domestic and international markets.
