SPC Ardmona - sales of assets cancelled

SPC Ardmona - sales of assets cancelled

The sale of Australian food manufacturer SPC Ardmona's IXL jam and Taylor's sauces business to Kyabram Conserves has fallen through.

The Coca-Cola Amatil-owned firm, which also produces packaged fruit, tomatoes and baked beans, had been looking to sell the assets since the start of the year.

It announced in September a deal had been done over its IXL jam and Taylor's sauces products with Kyabram, a newly-established company backed by Sydney-based fund and asset manager Millinium Capital Managers. The terms of the deal were not disclosed.

But now Coca-Cola Amatil has announced that the deal is off and the IXL and Taylor's brands will remain part of SPC. 

"The sale to Kyabram Conserves, which was scheduled for completion by 31 October 2018, will no longer be proceeding," it said.

It added "any next steps for the IXL and Taylor's Marinade and Sauces brands will be considered in conjunction with the strategic review of growth options for SPC announced by Coca-Cola Amatil on 22 August 2018".

SPC acquired the businesses in 2004 in a deal with Henry Jones Foods, an Australian subsidiary of US-based J.M. Smucker.

IXL is the second-best selling jam brand in Australia and is produced from a site in Kyabram.

At the time the now cancelled deal was announced in September, SPC managing director Reg Weine said: "This is a good outcome for IXL and Taylor's and good news for the Goulburn Valley. IXL and Taylor's are great brands, but the spreads and sauces/marinades categories were a small part of the SPC portfolio and it was better we focused on areas where we have a more distinct competitive advantage."

A strategic review was launched by SPC in August when it said options could include a possible sale of the entire business.

just-food has asked Coca-Cola Amatil for further information on why the deal was called off.