Consumer products giant sells off two international businesses
Manchester based PZ Cussons has sold off two of its businesses in a bid to streamline its operations.
The international consumer products group has agreed to sell its Greek food subsidiary Minerva for £41m and its Polish personal care brand Luksja.
As a result of the deal the firm is closing its operations in Poland.
PZ Cussons has exchanged contracts for the sale of 100% of the share capital of its Greek subsidiary, Minerva S.A. Edible Oils and Food Enterprises to Luxembourg investment firm Mirties Enterprises Company Limited.
Completion will occur upon draw down of funds by the purchaser from its financing bank which is expected within the next few weeks.
Proceeds from the sale will be used to reduce existing debt in the business and drive focused investment in PZ Cussons’ core brands.
Founded in 1904, Minerva was the first company to sell branded packaged olive oil in Greece.
Over a history spanning more than 115 years, Minerva has established itself as an iconic brand and holds leading positions in each of the olive oil, spreads, vinegar and cheese categories.
The profits and gross assets attributable to Minerva are £500,000 and £53.6m respectively.
PZ Cussons’ results for the year ended 31 May 2019 included Minerva Sales and EBITDA of £44.1m and £3.3m respectively.
PZ Cussons has exchanged contracts for the sale of Polish personal care brand, Luksja, together with all associated inventory, to Athens based personal care company, Sarantis Group.
PZ Cussons and Sarantis have agreed to enter into a distribution agreement.
Following completion of the sale PZ Cussons’ on-the-ground operations in Poland will be wound down.
PZ Cussons chief executive Alex Kanellis said: “The proposed sale of Minerva and Luksja forms part of PZ Cussons’ new strategy to ‘Focus, Scale and Accelerate’, announced along with our final FY19 results on 23 July 2019.
“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.
“The sale of Minerva provides additional proceeds to continue to drive our strategy forward. Deca is an excellent partner for Minerva’s future growth prospects and I would like to thank the Minerva team for their hard work and dedication during their time with us and wish them every success in the future.”
A corporate team from Addleshaw Goddard, led by Paul Medlicott, with Duncan Wilson and Rachael Norris, advised PZ Cussons.
