AUSTRALIA – Nature One Dairy, SPC Global, and The Original Juice Company (OJC) are set to merge, creating a new entity in Australia’s food and beverage sector projected to generate more than A$400 million (US$275 million) in revenue by 2025.
The merger will bring together the three companies under one umbrella, aiming to leverage their collective strengths to expand market reach and production capabilities, both domestically and internationally.
The new business, yet to be named, will be publicly listed on the Australian Securities Exchange (ASX) under the code SPG.
Robert Iervasi, former CEO of Asahi Beverages Group and current SPC director, has been appointed as managing director of the merged entity.
Based on each company’s operations, the entity will operate three divisions: SPC, OJC, and Nature One Dairy.
The merger is expected to be finalized in November 2024, pending shareholder approval.
According to Iervasi, the combination of their expertise in fruit, dairy, and juice would open up new opportunities for growth and expansion globally.
“The addition of Nature One Dairy also allows us to diversify and reach more consumers every day through our international channels,” he said.
Steven Cail, CEO of OJC, also hailed the merger as a transformative moment, emphasizing the new company’s potential to become a market leader in food and beverage production.
“Bringing our premium portfolio of juice products and processing technology together with SPC’s iconic brands and the powdered milk business of Nature One Dairy creates significant production capability to establish a food and beverage-producing market leader,” said Cail.
SPC, Australia’s largest producer of packaged fruit, tomatoes, baked beans, and spaghetti, is bringing a century of expertise to the merger with well-known brands like SPC, Ardmona, and Goulburn Valley.
Nature One Dairy, an Australian-founded, Singapore-registered company, specializes in infant formula, nutritional formula, and milk powder, while OJC is known for its premium fruit and vegetable juices.
According to financial documents, SPC generated A$271 million in revenue in the 2024 financial year, while Nature One Dairy and OJC contributed A$46 million and A$49 million, respectively.
The new combined entity is projected to deliver more than A$29 million in EBITDA by 2025.
Under the terms of the deal, OJC will issue 133 million shares to SPC shareholders and up to 29 million shares and A$6 million in cash to Nature One Dairy shareholders.
Once finalized, shareholders of SPC, Nature One Dairy, and OJC will hold 69.2%, 15.3%, and 15.5% of the combined business, respectively.
Nick Dimopoulos, CEO of Nature One Dairy, and Cail will continue to work with the merged entity during the transition period.
Hussein Rifai is set to take over as chairman of the combined group, while current OJC chairman Jeff Kennett will retire once the merger is completed.
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