Bega Group has agreed to sell certain assets of its peanut processing business, Peanut Company of Australia (PCA), to peanut processor Crumptons.
Bega announced last week that the sale covers “certain limited assets” of PCA, which include the land, buildings and equipment at Kingaroy and Tolga in Queensland. The financial details of the deal were not disclosed.
In July, the group revealed it would wind down PCA following the completion of a year-long strategic review. The business was reported to have suffered operating losses of between $5 million and $10 million each year.
As part of the plans at the time, the facilities at Kingaroy and Tolga will see a phased shutdown over an 18-month period.
Despite the deal with Crumptons, Bega CEO Pete Findlay said the group would still shut down PCA, but was pleased that the land, buildings and equipment would remain in “local hands”.
Crumptons is based in Kingaroy and is currently under the leadership of Sonie Crumpton and his brother Darren – the fourth generation of the family-owned business.
Crumptons is expected to take over the Tolga assets in December, while the Kingaroy site will be handed over next June.
Bega has been working with Crumptons to identify up to 30 potential roles to facilitate the transition.
