Australia’s Coca-Cola Amatil is set to sell its SPC fruit and vegetable processing business to Shepparton Partners Collective and its group of companies for A$40m ($27.9m).

Shepparton Partners Collective is a joint venture (JV) between Perma Funds Management and The Eights.

Perma Funds Management managing director Hussein Rifai said: “We are delighted to have acquired SPC, one of Australia’s most iconic businesses. We believe there is enormous opportunity to grow this unique 100-year-old brand further domestically and internationally.

“The investments made by Coca-Cola Amatil over the years have ensured SPC represents the best of the breed in equipment, safety and manufacturing standards and personnel. We need to focus on utilising SPC’s full capacity by creating new, innovative products and exploring new distribution channels.

“We are also excited to improve SPC’s current offering with exciting initiatives, products and solutions that will appeal to a broader market at home and abroad whilst generating greater returns for stakeholders.”

The sale agreement also includes a deferred payment for four years, which could result in up $15m of additional sale proceeds, subject to business performance.

The divestiture is part of the review and divestment process, which commenced in August, with the new owners committing to grow the Goulburn Valley-based business and offering employment to all permanent staff.

Coca-Cola Amatil group managing director Alison Watkins said: “Shepparton Partners Collective recognises the value of SPC’s brands, the opportunities for innovation and category growth in Australia, and it’s export potential.”

The sale is expected to be completed by the end of this month.