SPC joins forces with Original Juice Company and Nature One Dairy in merger

Australia’s largest cannery, SPC, has agreed to merge with the Original Juice Company in a three-way deal to increase the scale of its food and beverage businesses.

The Original Juice Company announced on the Australian Stock Exchange that it had reached an agreement to merge with SPC and Singapore-registered, Australian-incorporated 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 products for Australian and global markets for more than a century, but has recently scaled back pear production as it struggled to compete with supermarket brand 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 agriculture sector is a core pillar of our national identity in Australia and the backbone of many regional cities across the country,” Kennett said in a statement.

“We need to support companies like OJC, SPC and NOD to continue to thrive in their mission to support local growers, employ Australians in our processing plants and produce iconic healthy products for consumers both in Australia and abroad.”

SPC’s new Managing Director, Robert Iervasi, will lead the combined company.

“We are excited to expand with OJC both nationally and globally and see significant synergy potential in bringing the two manufacturers together,” Mr. Iervasi said in a statement.

“Proud of our 100+ history and our roots in Shepparton, 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.