Australia’s largest cannery, SPC, has agreed to merge with Original Juice Company in a three-way deal to drive scale in the food and beverage business.
Original Juice Company announced on the Australian Stock Exchange that it had reached an agreement to merge with SPC and Australian-founded and Singapore-registered dairy and milk powder company Nature One Dairy.
The deal is subject to shareholder approval and ASX requirements, and the combined company is expected to generate more than $400 million in revenue this financial year.
SPC has produced canned goods for more than a century for the Australian and world markets, but recently reduced pear production as it struggled to compete with supermarket branded products sourced from cheaper imported fruit.
Outgoing Original Juice chairman and former Victorian Premier Jeff Kennett said he was excited about the future of the combined company.
“The agricultural industry is a fundamental pillar of our national identity in Australia and the backbone of many regional cities across the country,” Kennett said in a statement.
Australia’s largest cannery has merged with Original Juice Company and Nature One Dairy.
Outgoing Original Juice President Jeff Kennett is excited about the future of the merger.
“We should support companies like OJC, SPC and NOD to continue to thrive in their mission to support local producers, employ Australians in our processing plants and produce iconic healthy products for consumers both in Australia and abroad.”
SPC’s new CEO, Robert Iervasi, will lead the combined business.
“We are excited to expand with OJC both domestically and globally and see significant synergy potential in bringing the two producers together,” Iervasi said in a statement.
“Proud of our 100+ history and our Shepparton roots, SPC looks forward to working with the OJC team to accelerate growth and leverage the combined platform to enhance the distribution of our products.”
Original Juice Company shareholders will vote on the deal in November.