PZ Cussons swallows Aussie organic yoghurts firm
PZ CUSSONS, the intenrational consumer products group behind brands such as Carex and St Tropez, has snapped up another Australian food business in a £44.1m deal.
The Manchester-based group, has agreed to buy organic yoghurt firm Five:am – one of the most successful entrants to the Australian food industry over the past decade.
The business has strong retail partnerships across the country and the potential for significant growth, both within Australia and other markets. Products are manufactured at its factory near Melbourne. Revenue and EBITDA for the year ended June 30 2014 were £19.6m and £3.4m respectively.
PZ Cussons said the deal, which follows its acquisition of Australian baby food business Rafferty’s Garden in July last year, was due to complete soon. The business is being acquired for £44.1m in cash with an additional consideration of a maximum of £7.7m payable subject to the performance of it in the year ending June 30 2015.
The firm is being acquired on a cash and debt free basis using existing facilities and is expected to be earnings enhancing in the current financial year.
Alex Kanellis, chief executive of PZ Cussons, which is based next to Manchester Airport, said: “We are delighted to have acquired such an exciting brand which is an excellent fit with PZ Cussons’ existing presence in the fast growing core food and nutrition category.
“Since its launch in 2011, Five:am has become a market leader in the Australian organic food category. A combination of industry leading innovation, a compelling brand proposition and a high quality product range has driven the business’ growth to date and leaves it uniquely placed to take advantage of the market trends of increasing yoghurt consumption and demand for organic and nutritious products.
“Following the acquisition, our balance sheet remains strong, giving us the capacity to take advantage of further investment opportunities as they arise.”
David Prior, founder and former owner of Five:am added: “I am delighted that Five:am has chosen a great home for the future. The cultural fit with PZ Cussons was apparent immediately and I am sure that the business will flourish under its ownership. I am very pleased to be maintaining an involvement in Five:am for a period post-completion and am looking forward to working with Alex and his team over the coming months.”
