SPC Global and The Original Juice Co have confirmed their merger plan – with an additional partner, Nature One Dairy’s powdered milk division. The trio aim to establish what they describe as a significant Australian food and beverage corporation.
The Original Juice Co will purchase SPC Global and Nature One Dairy’s powdered milk business under a binding Merger Implementation Deed and Share Sale Agreements, subject to several conditions, including shareholder approval in November.
As part of the transaction, the Original Juice Co aims to issue 133 million shares to SPC stockholders. In conjunction with the acquisition of SPC, OJC intends to issue up to 29 million shares and pay up to $6 million in cash to Nature One Dairy stockholders.
Following the transaction, the companies’ shareholders are expected to own 15.5 per cent, 69.2 per cent, and 15.3 per cent of the combined business, respectively.
“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,” said The Original Juice Co CEO, Steven Cail.
Nature One Dairy, established in Australia and registered in Singapore, produces and sells premium infant formula, nutritious formula, and milk powder in Australia, China, and other Asia Pacific markets.
Former Asahi Beverages Group CEO and current SPC director Robert Iervasi has been named MD of the combined company, which will own and oversee the three business divisions.
At the end of last month, SPC Ardmona was rumoured to be in talks with The Original Juice Co about a possible merger. The transaction aims to extend SPC’s product portfolio and allow it to enter new markets, with SPC Ardmona owning 75 per cent of the combined firm if it proceeds.
