Australia's food and beverage industry has a new FMCG giant, with SPC Global, The Original Juice Company (OJC), and Nature One Dairy merging to create a new company under the leadership of former Asahi Beverages Group CEO and current SPC Director, Robert Iervasi.

The transaction will see OJC acquire SPC Global and the powered milk business own by Nature One Dairy via a binding Merger Implementation Deed and Share Sale Agreements subject to the approval of OJC shareholders in November. As it stands, OJC will issue 133 million shares to SPC shareholders, and 29 million shares and cash of up to $6 million to the shareholders of Nature One Dairy.

On completion of the Transaction, expected in November, OJC, SPC and NOD shareholders are expected to hold 15.5%, 69.2% and 15.3% of the combined business respectively. The company is expected to deliver upwards of $400 million in revenues and more than $29 million of EBITDA in FY25, and will be listed on the Australian Stock Exchange under the code SPG.

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

SPC, Australia's largest producer of fruit, tomato, baked beans and spaghetti processing, packaging, and canning, boasts brands such as SPC, Ardmona, Goulburn Valley, ProVital, Pomlife, the Good Meal Co, and Street Eats. The Original Juice Company, established in 1988, specialises in chilled fruit and vegetable juices, manufacturing high-quality juices, fibres, infused fruits, and fruit waters for both domestic and international markets. While Nature One Dairy, a Singapore registered, Australian-founded dairy company, manufactures and sells premium infant formula, nutritional formula and milk powder products, with an established sales and marketing footprint in Australia, China and other Asia Pacific markets.

"SPC Global is excited to be joining with OJC and Nature One Dairy and come to market with a leading food and beverage platform. 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," said Iervasi.

"Proud of our 100-plus year 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."

CEO of The Original Juice Company, Steven Cail, said: "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."

Cail, along with Nature One Dairy chief Nick Dimopoulos will remain with the consolidated business 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, is retiring from his position upon completion of the transaction. He said: “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. 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.”

Hussein said that the transaction is a critical step in advancing the global strategy that has guided SPC since its divestment from Coca-Cola Amatil in 2019.

"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."