Two iconic Australian businesses with household brands that have been in the pantries of Australian families for decades are merging, together with the powdered milk business of a third Australian founded business Nature One Dairy to create a market leading Australian food and beverage company with significant scale.

Former Asahi Beverages Group CEO and current SPC Director Robert Iervasi has been appointed the Managing Director of the merged business, which will own and operate three business divisions, namely SPC, The Original Juice Co. and Nature One Dairy.

SPC is an iconic Australian brand and is the largest producer of fruit, tomato, baked beans and spaghetti processing, packaging, and canning in Australia. It holds some of Australia’s most recognisable household food brands such as SPC, Ardmona, Goulburn Valley, ProVital, Pomlife, the Good Meal Co, and Street Eats – feeding Australian families for more than 100 years.

The Original Juice Company is a well-known Australian food processing company specialising in chilled fruit and vegetable juices. Founded in 1988, it has maintained a commitment to sourcing local fruit and producing fresh juice daily for over 30 years. Using a mix of conventional and custom-developed equipment, OJC manufactures high-quality juices, fibres, infused fruits, and fruit waters for both domestic and international markets.

Nature One Dairy is a Singapore registered, Australian-founded dairy company that manufactures and sells premium infant formula, nutritional formula and milk powder products. With an established sales and marketing footprint in Australia, China and other Asia Pacific markets, products are sold under the Nature One Dairy brand. The Nature One Dairy international market presence provides a platform for further inorganic growth for the combined business through product diversification and access to the Asian distribution market.

Together the three businesses create a substantial Australian based and owned global food and beverage companies that will continue to support Australian producers and execute on a global growth strategy.

Tate & Lyle PLC, a leading global provider of food and beverage ingredients and solutions, announces that it has signed an agreement to acquire Quantum Hi-Tech (Guangdong) Biological Co., Ltd (Quantum), a leading prebiotic dietary fibre business in China from ChemPartner Pharmatech Co., Ltd (ChemPartner) for a total consideration of USD 237 million.

Quantum engages in the research, development, production and sale of fructo-oligosaccharides (FOS) and galacto-oligosaccharides (GOS). Together, FOS (from sucrose) and GOS (from milk sugar/lactose) represent around 25 % of the global dietary fibres market which is forecast to grow at around 6 % per annum. In China, which currently represents the majority of Quantum’s sales, the FOS and GOS market is forecast to grow at around 10 % per annum.

The acquisition of Quantum significantly strengthens Tate & Lyle’s position as a leading global player in dietary fibres, bringing a high-quality portfolio of speciality fibres, strong R&D capabilities and proprietary manufacturing processes and technologies. The acquisition expands Tate & Lyle’s ability to provide added-fibre solutions for its customers across a range of categories including dairy, beverages, bakery and nutrition (including infant nutrition), and to meet growing consumer interest in gut health. It also significantly expands Tate & Lyle’s presence in China and Asia, and extends its capabilities to create solutions across food and drink utilising its leading speciality ingredient portfolio.

The transaction is subject to approval by the shareholders of ChemPartner, a public company listed in China, of which Quantum is a wholly-owned subsidiary. At completion, consideration will be paid in cash for 100 % of the equity interests in Quantum. For the 11 months ended 30 November 2021, Quantum generated revenue of USD 46 million and EBITDA of USD 14 million. The acquisition is expected to be accretive to revenue growth and EBITDA margin for Tate & Lyle in the first year of ownership.

Quantum produces its range of FOS and GOS fibres at its production site in Guangdong Province, Southern China. The management team of Quantum will join Tate & Lyle at completion. Closing of the transaction is expected to occur in the second quarter of calendar year 2022.