👉 Background: SPC is an Australian classic, dating back to every child's school recess. It has its own products under the SPC brand, but it also owns other iconic Aussie brands like Goulburn Valley and Ardmona.

👉 What happened: Coca-Cola Amatil acquired SPC in 2005 for $750m, but it was losing $15m each year so they put it up for sale.

👉 What else: Two private equity firms snapped up SPC for $40 million and have managed to turn it around. They’ve invested heavily in the business to turn a $14m pre-tax profit. We’re talking BAKED BEANS AND VEGEMITE COLLAB.

What's the key learning?

💡 Private equity investors take the buy low, sell high approach to a whole new level. Private equity investments are those made into companies that are not publicly traded.

💡The goal for PE firms is to identify companies that have high potential.. But may have lost their way. So PE firms will often:

• Step 1: Gain influence or control over that company's operations
• Step 2: Change over personnel
• Step 3: Throw in a big chunk of capital to improve the struggling bits
• Step 4: Cut underperforming assets

💡And that’s exactly what PE did with SPC - they got rid of three layers of management and bid farewell to non-performing products. And long story short, they have converted the company from a frog into a fruity prince.