Fruit and vegetable processor SPC has taken a majority stake in a frozen food manufacturer to grow its capabilities in aged care and health markets.
The Kuisine Company producers of prepared meals and finger foods with a range of clients including Aldi, health services, the NDIS, Meals on Wheels and other food service clients. The acquisition includes Kuisine Co’s wholly owned brands – The Good Meal Co, The Gluten Free Meal Co, and Simply Special.
SPC CEO Robert Giles told Food & Drink Business the business was a good fit for SPC’s expansion plans and builds on its existing footprint in the health care space with its ProVital range. It also opens up new channels outside of retail for the business.
“We are already strong in the aged care and healthcare sectors through our fruit products. The addition of Kuisine’s frozen meals can work with our current sales structure around the country. Its work with the NDIS and on the direct-to-consumer platform is a good opportunity for expansion.
“The scale and scope of Kuisine’s capabilities means that we can expand our offering to include frozen foods, finger foods and ready-made meals,” Giles said.
According to The Australian, in October 2019, Kuisine was awarded a second five-year contract to supply 72 per cent of ready meal requirements to the NSW Health hospital network, which equates to roughly nine million meals a year to NSW hospitals.
Giles said it’s a unique market as New South Wales is the only state moving to an outsourced model.
SPC will also take up the industrial supply of tomato products and others for Kuisine’s ingredient needs.
Kuisine Co was founded 20 years ago by the Gohil family. Last year the company had $30 million turnover. It’s based in Emu Plains in Sydney’s western suburbs.
Kuisine Co director Pran Gohil said: “We are proud to have built such a high-quality family-owned business that supplies customers throughout Australia. SPC is an ideal partner to drive the business forward into the next level of growth stage to deliver high-quality food to people in Australia and the rest of the world. We are looking forward to supporting SPC through this transition.”
Jitesh Gohil will continue as general manager and a director of the Kuisine business.
Giles said: “It’s an exciting time for both businesses. This announcement is in line with our strategy to become a global agribusiness which we are continuing following our acquisition of Pomlife earlier this year and joint venture with Döhler.”
The JV with Döhler was announced in June.
At the time, SPC chair Hussein Rifai told FD&B the JV was part of its aggressive growth strategy.
“There is no silver bullet to achieve that. Our growth strategy is to acquire or enter new categories and develop international markets. Our partnership with Döhler is a natural fit and will form the core of our global ingredients business… We’re not just talking baked beans or retail products, the ingredients market is massive, so to develop our business in that area is very exciting.”
Giles told FD&B project briefs are now with Döhler and the first business projects are in the pipeline.
Dohler – projects onboard with them – pomegranates, industrial contracts take a while to win so now we’ve given them our briefs and we’re looking forward to our first business with them
The Kuisine acquisition is the latest move from SPC in its bid to become a global business. Media reports in The Australian this week said its owners, Perpetuity Capital and The Eights, have just launched a $100m capital raise from high net worth and institutional investors through a private share placement offer.
The Australian reported SPC posted earnings before depreciation and amortisation (EBIDTA) of $45.6 million in FY20, from $248.1 million in revenue. Up from a $13 million loss two years ago.
Rifai told the paper: “We want to use the new funds to build our capital base and progress the expansion of the company to provide more stability to our revenue streams in both the Northern and Southern Hemisphere’s growing seasons, while expanding our sales channels and product categories.”
