Cussons spends £21m for controlling stake in milk JV

CONSUMER products group PZ Cussons has bought a 50% stake in Nutricima, the Nigerian milk-supply joint venture between Glanbia and the Manchester company, the  for £21m.

The deal gives Cussons full ownership and control. The company has also entered into a new long-term agreement with Glanbia Ingredients Ireland for the supply of milk-based products to Nutricima.

The joint venture’s revenues, EBITDA and PBT for the year ended May 31 2014 were £74.4m, £3.2m and £1.3m respectively.  Gross assets at that time were £57.9m.
 
The Nutricima joint venture with Glambia was formed in 2003 to build a facility in Nigeria to supply evaporated milk and milk powder for the local market. A second facility for the manufacture of UHT products was opened in 2009.

Over the last decade, Nutricima has developed brands including Nunu, Olympic and Yo which Cussons says will be further strengthened by the new deal.

Chief executive of Cussons Alex Kanellis said: “We are pleased to have taken full control of Nutricima.  PZ Cussons is committed to the long term growth of the business and looks forward to the continued strengthening and development of its brands.
 
“We are also pleased to have entered into a new agreement with Glanbia Ingredients Ireland which ensures continuing supply of both existing and innovative new products.

“Following the buy-out, our balance sheet remains strong, giving us the capacity to take advantage of further investment opportunities as they arise.”

Manchester-based Addleshaw Goddard advised on the deal. The team was Paul Medlicott, Tina Wong, Joanne Cooper, Michael Rainey, William Ngan and Justine Delroy.

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