Australia's biggest cannery SPC has agreed to merge with the Original Juice Company in a three-way deal to boost the food and beverage businesses' scale.
The Original Juice Company announced on the Australian Stock Exchange it had reached a deal to merge with SPC and Singapore-registered, Australian-founded dairy and powdered milk company Nature One Dairy.
The deal is subject to shareholder approval and ASX requirements, and the combined company is expected to deliver more than $400 million in revenue this financial year.
SPC has produced canned products for more than a century to Australian and global markets, but recently cut pear production as it struggled to compete with supermarket-branded products sourced from cheaper imported fruit.
Original Juice outgoing chair and former Victorian premier Jeff Kennett said he was excited about the combined company's future.
"The agriculture industry is a core pillar of our national identity in Australia and the backbone of many regional towns across the country," Mr Kennett said in a statement.
"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."
SPC's incoming managing director Robert Iervasi will lead the combined business.
"We are excited to expand with OJC both domestically and globally and see significant synergy potential in bringing the two producers together," Mr Iervasi said in a statement.
"Proud of our 100+ 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."
Original Juice Company shareholders will vote on the deal in November.
