Midlands tanning firm acquired in £62m deal

MIDLANDS based tanning products business St Tropez Holdings has been acquired by consumer products group PZ Cussons from private equity group LDC in a £62.5m deal.

St Tropez, which employs 70 people at its base in Chilwell, near Nottingham, produces the UK’s leading sunless tanning product range, consisting of lotions, mousses, sprays and other products.

In the year to the end of July, St Tropez Holdings made EBITDA of £7.4m on revenue of £20.7m. It had gross assets of £48.1m, including £42.1m of goodwill.

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.

Alex Kanellis, chief executive of PZ Cussons, said: “The acquisition of the St Tropez brand represents an excellent strategic opportunity for PZ Cussons and further strengthens our portfolio of ‘masstige’ brands which includes The Sanctuary and Charles Worthington.

“We see good growth opportunities, both in the UK and overseas, particularly by linking the strategy to that of The Sanctuary spa brand. Following this acquisition our balance sheet remains strong giving us flexibility for further investment opportunities as they arise.”

More than 80% of St Tropez’s sales are within the UK with Australia and the US also growing markets for the brand.

Distribution in the UK is mainly into Boots, Superdrug, Debenhams, Sainsbury’s, House of Fraser and John Lewis, as well as through major salons.

Michelle Feeney, chief executive of St Tropez, said: “I am thrilled that St Tropez is going into such a great home. PZ Cussons offers a synergistic opportunity for growth particularly in conjunction with The Sanctuary and will add the scaleability that the brand needs to become a truly international player.”

Brandon Leigh, PZ Cussons finance director said: “San Tropez is a really nice brand for us. It’ll fit well with Sanctuary and Charles Worthington, which are both also primarily brands for women, and have been performing well.”