SPC buys Kuisine Group ahead of $100 million capital raising

SPC has entered the prepared meals sector, making what it calls a “strategic investment” by purchasing Kuisine Group — ahead of a looming $100 million capital raising.

SPC is on a buying spree and its run if far from over if a $100 million capital raising is successful. Picture: Zoe Phillips

HISTORIC processor SPC has made its first foray into prepared frozen meals ahead of a $100 million capital raising.

Shepparton Partners Collective has bought a controlling stake in Sydney-based frozen meals business Kuisine Company, with an option to raise its ownership to 100 per cent in the future.

The move has been described as a “strategic investment” that will further the company’s exposure into the lucrative health and aged care markets.

SPC chief executive Robert Giles said the acquisition included Kuisine’s three subsidiaries, The Good Meal Co, The Gluten Free Meal Co and Simply Special.

“By acquiring Kuisine we are continuing to grow our health and aged care sector offering which already has a strong base through our existing ProVital brand,” Mr Giles said.

“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.”

Kuisine has the contract to supply almost three quarters of the ready-made meals to NSW Health’s hospital network. Unlike in Victoria, where hospitals have in-house kitchens, NSW outsources its meals. Mr Giles said the synergies with SPC’s packaged fruit offering were obvious.

The timing coincides with SPC’s opening of a share offer to raise up to $100 million.

SPC was purchased by a joint venture between Sydney-based boutique investment house Perma Funds Management and The Eights, a private equity firm, for $40 million in 2019 with a plan to turn the 100-year-old fruit and vegetable processor into a global agribusiness powerhouse.

It was previously owned by Coca-Cola Amatil, which acquired the business for $700 million in 2005.

Earlier this year SPC entered a joint venture with major German food ingredients manufacturer Döhler to produce “technology driven” natural ingredients and expand its offering beyond the canned food aisle.

This follows its purchase of PomeLife, a pomegranate fruit brand, to aid its push into export markets, and a kombucher business.

Perma Funds managing director Hussein Rafai said the capital raising would help SPC purchase this season’s crop of fruit as well as invest in more complimentary acquisitions, including another frozen food brand.

He said a number of purchases would be made in the coming year ahead of a float — most likely on the ASX — within two years.