Coca-Cola Amatil completed the sale of SPC to Shepparton Partners Collective on Friday for A$40 million.
The drinks bottler said in a statement to the ASX on Monday morning that it is expecting to record a profit of A$14 million from the sale.
The deal also includes a four year earnout structure, which could lead to an additional A$15 million of sale proceeds.
Group managing director of CCA Alison Watkins said that the business will now focus on building its beverage portfolio.
“SPC has been a much-loved part of our portfolio since 2005, and we’re confident it has a bright future in the hands of its new owners. Shepparton Partners Collective recognises the value of SPC’s brands, the opportunities for innovation and category growth in Australia, and its export potential,”
Watkins said in a statement.
“On behalf of Amatil, I thank everyone at SPC for their commitment to the business and wish them well in continuing to grow their domestic and international markets.”
CCA invested around A$250 million on SPC since it was acquired in 2005, including investments in technology, operational and energy efficiencies and new equipment.
The company launched a A$100 million co-investment program from 2014 to 2018 and it also modernised SPC’s tomato and snack cup production. It launched a new aseptic fruit processing system and pouch line at the Shepparton site.
Shepparton Partners, a joint venture between Perma Funds Management and The Eights, has offered ongoing employment to all permanent members of the SPC team.