Australia’s food and beverage industry has a new FMCG giant: SPC Global, The Original Juice Company (OJC) and Nature One Dairy are merging to form a new company led by former Asahi Beverages Group CEO and current SPC director Robert Iervasi.

As part of the transaction, OJC will acquire SPC Global and Nature One Dairy’s power milk business through a binding Merger Implementation Deed and Share Sale Agreements, subject to approval by OJC shareholders in November. Currently, OJC will issue 133 million shares to SPC shareholders and 29 million shares and cash worth up to $6 million to Nature One Dairy shareholders.

Upon completion of the transaction, which is expected in November, shareholders of OJC, SPC and NOD are expected to own 15.5%, 69.2% and 15.3%, respectively, of the combined business. The company is expected to generate revenue of over $400 million and EBITDA of over $29 million in FY25 and will be listed on the Australian Stock Exchange under the symbol SPG.

Iervasi will be CEO of the newly merged company, which will own and operate three divisions, namely SPC, The Original Juice Co. and Nature One Dairy.

SPC, Australia’s largest manufacturer of processing, packaging and canning products for fruit, tomatoes, baked beans and spaghetti, has brands including SPC, Ardmona, Goulburn Valley, ProVital, Pomlife, the Good Meal Co and Street Eats. Founded in 1988, Original Juice Company specializes in chilled fruit and vegetable juices and produces high quality juices, fiber, fortified fruits and fruit waters for the national and international markets. Nature One Dairy, a Singapore-registered, Australian-founded dairy company, manufactures and distributes premium infant formula, formula and milk powder products and has an established sales and marketing presence in Australia, China and other Asia Pacific markets.

“SPC Global is pleased to partner with OJC and Nature One Dairy to bring a leading food and beverage platform to market. With our market-leading packaged fruits, canned tomatoes and baked bean products, we are excited to expand with OJC both domestically and globally and see significant synergy potential in combining the two producers,” said Iervasi.

“SPC is proud of our 100+ year history and Shepparton roots and looks forward to working with the OJC team to accelerate growth and leverage the shared platform to improve the 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.”

Steven Cail, CEO of The Original Juice Company, said: “This is a transformative moment for OJC as we bring together our premium portfolio of juice products and processing technology with SPC’s iconic brands and Nature One Dairy’s milk powder business, creating significant manufacturing capabilities. “ The strategy has always been focused on preparing the company for future growth and synergies and I am extremely excited about what the future holds for OJC. We will strengthen SPC’s long-standing legacy and help propel the combined company forward into its next phase of success.”

Cail, along with Nature One Dairy boss Nick Dimopoulos, will remain in the consolidated company following the transaction to ensure a smooth transition. They will be joined by David Mallinson as interim chief financial officer and SPC chairman Hussein Rifai will become chairman of the combined group.

OJC Chairman Jeff Kennett will step down following the completion of the transaction. He said: “It is an honor to serve as Chairman of the OJC since December 2022. The agricultural industry is a key pillar of our national identity in Australia and the backbone of many regional cities across the country. We should support companies like OJC, SPC and NOD to continue to thrive in their mission to support local producers, employ Australians in our processing plants and produce iconic healthy products for consumers in Australia and abroad. I am excited about the prospects of the combined business.”

Hussein said the transaction is a crucial step in further developing the global strategy that has guided SPC since the divestment of Coca-Cola Amatil in 2019.

“Since acquiring SPC from CCA, our strategy has been to firmly establish ourselves as a market leader in both the Australian and global markets. Building a strong foundation in our home market is critical to 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 implementing our broader global strategy, which targets key international markets, particularly in Asia, where we see significant growth opportunities.”