SPC Global’s capital raise brings new investors into the business and members to the board, a sale and leaseback of its Shepparton site, as well as funds to fuel its growth strategy, with acquisitions on the dance card for 2022.
SPC CEO Rob Giles said the funding round showed the company’s commitment to reinvesting in Australian products.
“In line with our vision for continued growth, we are doing all we can to highlight Australian food and beverages internationally. Local partnerships like these make our mission possible,” Giles said.
The local partnerships come in the form of equity investments from The Australian Meat Industry Superannuation Trust (AMIST) and the family office of Peregrine Corporation managing director Khalil (‘Charlie’) Shahin.
AMIST is an industry super fund that began more than 30 years ago initially for those working in the meat industry, but now open to anyone.
Peregrine Corporation is the largest privately owned company in South Australia and eight in the country, with $2.9 billion revenue in FY21, up 15 per cent on the previous year.
Peregrine owns the On The Run brand of service stations and convenience stores in South Australia. It also operates 120 Smokemart & Giftbox retail stores nationwide and has the state licence for Krispy Kreme.
AMIST chief executive and investment officer Murray Rutherford will join the board, as will Charlie Shahin.
SPC chair Hussein Rifai said, “I am delighted to welcome Murray and Charlie to our board. Their vast knowledge and experience in the food industry will contribute immensely to the growth of SPC.”
Rifai said the SPC board believes Australia’s food security must be less reliant on imports, instead leaning on the excellence of Australian offerings.
“SPC continues to work together with business and government to ensure the long-term viability of food manufacturing in Australia,” he said.
Shahin said he could see the benefits of partnering with a highly reputable Australian-owned and run business.
“Our investment is a vote of confidence for SPC’s management and strategic plans, particularly the expansion of its Australian and global footprint, with the aim of replacing imports wherever possible,” Shahin said.
Rutherford said the investment made sense for AMIST because it began in the food sector.
“We are delighted to invest in such an iconic Australian business with successful turnaround and to again support the sector. I look forward to participating as a director of SPC and to contributing to its globalisation strategy,” Rutherford said.
The sale and leaseback of SPC’s flagship property on Andrew Fairley Avenue in Shepparton, Victoria to Charter Hall was an “integral part” of the growth capitalisation program, SPC said. Charter Hall has diversified funds under management in excess of $80 billion.
Charter Hall chief investment officer Sean McMahon said the company was looking forward to being SPC’s property partner.
“We are proud to be associated with one of Australia’s most trusted and iconic brands in the food manufacturing and consumables sector,” McMahon said.
Giles said, “We are delighted with the new partnerships and look forward to working with our new Board and welcome the knowledge and experience they bring. We are committed to reinvesting in Australian products.”
SPC has not been resting on its laurels since Shepparton Partners Collective bought the business from Coca-Cola Amatil for $40 million in June 2019.
In 2020, SPC announced a joint venture with ingredients specialist Döhler, Gourmet Ingredients. At the time, Rifai said the JV would see new products developed in Australia and then sold through Döhler’s sales and distribution channels.
It rolled out a new ERP system to replace the existing decades old system (although there have been court proceedings since regarding copyright breaches), overhauled the top two tiers of its management and leadership team, sold its Kyabram site, undertook a corporate rebranding, and bought the pomegranate juice company POM.
In June 2021, the company launched SPC Care, a dedicated nutritional health care company.In October 2020, SPC bought a majority stake in frozen food manufacturer Kuisine Co to grow its capabilities in aged care and health markets. It then launched part of that business, The Good Meal Company, into Tasmania in March 2021, supplying meals to public hospitals, the NDIS participants, home care residents, health services, aged care providers, Meals on Wheels and other foodservice clients.
SPC was also the first Australian company to mandate all staff be vaccinated.
