Original Juice Company acquires SPC and Nature One Dairy for significant merger
Powered milk organisation, Nature One Dairy (NOD), produce manufacturer, SPC, and the Original Juice Company (OJC) have announced that they will be merging.
The merger, announced via an ASX statement this week, comes about by OJC acquiring NOD and SPC, resulting in a “Combined Business” that stands as a market-leading international and Australian beverage and food organisation.
According to the statement, the transaction comes with several conditions, such as “OJC’s re-compliance with ASX’s requirements for admission and quotation” and approval from OJC’s shareholders.
The move is expected to bolster OJC in terms of scale, cohesive operations and diversification, while offering a growth-facilitating platform. Moving forward, the transaction is believed to support a larger volume of healthy beverage and food products for consumers to choose from, all under Australian brands.
The merger will also see Robert Iervasi – SPC’s managing director – step into a global managing director role for the Combined Business. Hussein Rifai, the present SPC chairman, will become the Combed Business’s chairman. Both Rifai and Iervasi will be responsible for spearheading the organisation’s strategic direction.
OJC chairman, Hon Jeff Kennett AC, will retire once the transaction ends.
I have been honoured to serve as Chairman of OJC since December 2022. The agriculture industry is a core pillar of our national identity in Australia and the backbone of many regional towns across the country,” Kennett said.
“We should be supporting businesses 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. I am excited about the prospects of the Combined Business.”
The ASX statement revealed that the decision to merge OJC, SPC and NOD into a single entity is a crucial move in enabling the international and Australian strategy of the three companies – a plan that SPC has followed since Coca-Cola Amatil sold it in 2019, as it matches with SPC’s goals of cementing itself as an international leader within the beverage and food industry.
As Rifai explained in the 10-page document: “Our goal is to create ‘better, healthier food for the future.’ Since acquiring SPC from CCA, our strategy has been to firmly establish ourselves as a leader in both the Australian and global markets. Building a strong foundation in our home market is vital for sustainable growth and success.”
“Our immediate focus is on solidifying SPC’s position as a domestic market leader. This is the essential first step before executing our broader global strategy, which targets key international markets, particularly in Asia, where we see significant growth opportunities.
“We are confident that this Transaction, backed by our strategic investments, will solidify SPC as a globally recognised brand while driving long-term value for our stakeholders.”
Iervasi shared his excitement at the joining of OJC, NOD and SPC, saying that the transaction will unlock a wider sweep of consumers and distribution channels.
“SPC Global is excited to be joining with OJC and Nature One Dairy and come to market with a leading food and beverage platform,” Iervasi enthused.
“With our market leading packaged fruit, canned tomatoes, and baked bean products, we are excited to expand with OJC both domestically and globally and see significant synergy potential in bringing the two producers together.
“Proud of our 100+ history and our Shepparton roots, SPC looks forward to working with the OJC team to accelerate growth and leveraging the combined platform to enhance distribution of our products. The addition of Nature One Dairy also allows us to diversify and reach more consumers every day through our international channels.”
The chief executive officers of OJC and NOD, Steven Cail and Nick Demopoulos, respectively, also expressed their excitement for the future of the companies.
As Cail put it: “This is a transformational moment for OJC, 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, creating significant production capability to create a food and beverage producing market-leader.
“The strategy has always focused on setting up the business for future growth and synergies, and I am extremely excited about what the future holds for OJC. The OJC team is excited to join the 100+ year legacy of SPC and contribute to taking the Combined Business forward in its next phase of success.”
“This is a great opportunity to be part of what will be one of Australia’s largest food companies,” Demopoulos added.
He continued, “NOD aligns very nicely with the SPC’s care business and its desire to expand into the Asia[n market]. Utilising the Combined Business skill base, we can produce high quality products at a reduced costs and take other products of the Combined Business into Asia.”
Demopoulos and Cail are going to continue working Combined Business “to ensure a successful transition”.
Keep up to date with the latest in media and marketing
Got a tip?
Matthew is the editorial assistant at Mumbrella. He joined the company at the end of September 2023.
Linkedin
topics
Hon Jeff Kennett AC
Hussein Rifai
Nature One Dairy
Nick Demopoulos
OJC
Original Juice Company
Robert Iervasi
SPC
Steven Cail
Have your say