Coca-Cola Amatil Ltd. said June 4 that it will sell its fruit and vegetable processing business SPC Ardmona Ltd. to Shepparton Partners Collective for a total consideration of A$40 million.

SPC's products include canned fruits, purees, fruit snacks and cooking condiments, among others.

The Australian Coca-Cola Co. bottler decided to put the business up for sale in November 2018 following a strategic review of the unit. SPC was no longer included in Coca-Cola Amatil's full-year accounts for 2018 following the company's decision.

The company said a profit on sale of A$10 million to A$15 million is expected, considering SPC's forecasted working capital balances, working capital adjustments to the sale price and costs of disposal.

Under the terms of the deal, a four-year deferred payment is also included, subject to the business' performance.

The deal is expected to close before the end of June. Coca-Cola Amatil said Shepparton Partners, a joint venture between Perma Funds Management and The Eights, agreed to offer employment to all of the unit's existing permanent staff.

Kidder Williams Ltd. acted as adviser to Coca-Cola Amatil in the deal, while Gilbert + Tobin Lawyers acted as its legal adviser.