Australia’s Coca-Cola Amatil (CCA) has said that the divestiture of its fruit processing company SPC is progressing well, despite the fall of its value.
The company noted that several parties have expressed interest and toured SPC’s manufacturing sites located in Shepparton.
CCA said that the range of offers, in both size and structure, as well as the inherent uncertainty of the financial outcome of the sale process, had triggered a non-cash impairment in the carrying value of the company from $146.9m before tax to a nominal value of zero for 2018.
SPC managing director Reg Weine said: “Specifics of these offers are confidential, but we’re seeing some solid Australian and international interest.
“Parties in this process clearly recognise the value in SPC’s iconic brands, the strategic location of our manufacturing assets in the heart of the Goulburn Valley, and our proximity to fast-growing export markets like China.
“It also reflects the significant transformation of SPC’s Shepparton manufacturing site and the state-of-the-art processing and packaging capability that is available to potential buyers of SPC. The overall level of interest is recognition of the inherent value of Australian agricultural assets and the iconic nature of SPC and its market-leading brands.”
The company further explained that it is receiving non-binding indicative offers, and the divestment process was on track to conclude by mid-2019.
Weine further added: “While accounting standards necessitate this impairment, it does not reflect SPC’s market value or the offers received and doesn’t indicate any change to SPC’s publicly reported outcomes.
“We see a positive future for SPC as a market leader in processed fruit and vegetables. The sale process is about unlocking this future value.”
SPC has been in international markets for more than five decades and its products have been distributed to countries including the US, New Zealand, Europe, Southeast Asia, Japan, the Middle East and the UK.
