PZ Cussons buys Aussie baby brand Rafferty’s Garden
PZ CUSSONS, the intenational consumer products group best known for shampoos and shower gels in this country, has snapped-up a baby food brand Down Under in a £42.2m deal.
The Manchester company has agreed a deal to buy premium nutritious baby food business Rafferty’s Garden from its private equity owner Anacacia.
Rafferty’s Garden, which makes products such as smoothies and sweet and savoury pouche purees has approximately 40% share of the ‘wet’ baby food market, as well as growing shares in the infant dry and snacks market.
It has recently begun exporting to countries such as Indonesia and Thailand. All of its manufacturing is outsourced to third parties.
Revenue and EBITDA for the year ended June 30 2012 were £22.5m and £3.5m respectively with growth of 10% estimated for the year to 30 June 2013. The business had gross assets of £12.5m.
PZ Cussons said the deal was due to complete soon. The business is being acquired on a cash and debt free basis from cash and existing facilities and is expected to be earnings enhancing in the current financial year.
Chief executive Alex Kanellis said: “The acquisition of Rafferty’s Garden marks the group’s entry into the food and nutrition category in Asia-Pacific and the addition of another leading brand to the group’s portfolio.
“This leading position together with an exciting pipeline of new products provides the platform for further growth within Australia. In addition, PZ Cussons’ distribution in countries such as Indonesia and Thailand, together with our understanding of consumers in those markets through our leading Cussons Baby brand, will enable the geographic expansion of Rafferty’s Garden to be maximised.
“Following this acquisition our balance sheet remains strong giving us flexibility for further investment opportunities as they arise.”
Michael Tinkler, managing director of Rafferty’s Garden added: “PZ Cussons is a great fit for our business and we are looking forward to working with them to service our existing stakeholders as well as expand the business internationally.”
