Coca Cola Amatil (ASX:CCL)
Historical Stock Chart
2 Months : From May 2019 to Jul 2019
By Mike Cherney
SYDNEY--Australian bottler Coca-Cola Amatil (CCL.AU) said Tuesday it will sell its SPC fruit and vegetable processing business for 40 million Australian dollars (US$27.9 million), capping a review process for the unit that began last August.
The unit is being purchased by Shepparton Partners Collective, a joint venture between investment firms Perma Funds Management and the Eights. The deal is expected to be complete before the end of June and Amatil said it will record a profit on the sale of between A$10 million and A$15 million.
The deal also includes a four-year deferred payment, subject to business performance, which could lead to an additional A$15 million in sale proceeds, Amatil said.
Amatil, which has been struggling with weaker consumer demand for its staple carbonated sugary beverages, had in recent years invested A$78 million in the SPC unit. The government of Australia's southern state of Victoria also invested another A$22 million.
Overall, Amatil said it poured about A$250 million into SPC since acquiring it in 2005.
Amatil said the sale doesn't include the Perfect Fruit and LUMI brands.
Write to Mike Cherney at firstname.lastname@example.org
(END) Dow Jones Newswires
June 03, 2019 19:19 ET (23:19 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.