PZ Cussons has offloaded two non-core brands as part of its new strategy announced last month to focus on personal care and beauty categories in markets that offer the best opportunities for revenue and margin growth.
The British company, which owns brands such as Imperial Leather and Carex, has sold its Greek olive oil and spreads subsidiary Minerva to Mirties Enterprises Company, a firm controlled by Luxembourg-based investment company Diorama Investments, for £41m.
Minerva generated sales and EBITDA of £44.1m and £3.3m respectively during its last financial year to 31 May 2019. The sale is expected to reduce PZ Cussons profit before tax by £1.8m in its next full-year results.
The company has also exchanged contracts on the sale its Polish personal care brand Luksja to Athens-based company Sarantis. The deal agreed will also see Sarantis distribute PZ Cussons’ core brands such as Carex, Original Source and Morning Fresh in Central and Eastern Europe.
The company stated that proceeds from the sales will be used to reduce its debts and drive investment in its core brands as part of its new ‘Focus, Scale and Accelerate’ strategy which was unveiled last month alongside disappointing year end results.
Alex Kanellis, CEO of PZ Cussons commented: “We are streamlining the group to focus investment on core Personal Care and Beauty brands to deliver higher margin earnings, in geographies that can scale, with the aim of returning the group to sustainable, profitable growth.”
NAM Implications:
- Possible opportunities for those suppliers that can benefit from non-core sales of PZ Cussons brands Minerva and Luksja…
- While PZC can benefit from cutting back to profitable core in terms of brands and countries.
- Proceeds from the sales will be used to reduce its debts and drive investment in its core brands as part of its new ‘Focus, Scale and Accelerate’ strategy.
- Watch this space…
