A profit on sale of $10-15 million is expected to be recorded upon completion.
Coca-Cola Amatil has announced that the SPC fruit and vegetable processing business (SPC) would be sold to Shepparton Partners Collective Pty Ltd and its group of companies (Shepparton Partners Collective) for consideration of $40 million payable at completion.
Taking into account forecasted working capital balances, working capital adjustments to the sale price and costs of disposal, a profit on sale of $10-15 million is expected to be recorded upon completion.
Both parties are targeting a completion date before the end of June. The sale agreement also includes a four-year deferred payment which, subject to business performance, could result in up to an additional $15 million of sale proceeds at that time.
Due to the realisation of recognised deferred tax assets, Amatil’s ability to frank dividends will be significantly impacted in the short to medium term. The sale concludes a review and divestment process commenced in August 2018, with the new owners committing to grow the Goulburn Valley-based business and offering employment to all permanent staff.
Coca-Cola Amatil is one of the largest manufacturers and distributors of ready-to-drink non-alcohol and alcohol beverages, coffee and ready-to-eat food snacks in the Asia Pacific region.