2 July 2013
PZ Cussons Plc
("the Group")
ACQUISITION OF AUSTRALIAN BABY FOOD BRAND RAFFERTY'S GARDEN
PZ Cussons Plc, a leading international consumer products group, announces the exchange of contracts for the acquisition of Australian baby food brand Rafferty's Garden. The entire issued share capital of Rafferty's Garden Pty Ltd ("Rafferty's Garden") is being acquired from Australian private equity firm Anacacia for £42.2m with completion to follow within a short period.
Rafferty's Garden is Australia's leading premium nutritious baby food brand with approximately 40% share of the wet baby food market, as well as growing shares in the infant dry and snacks market. An export business is in the early stages of development to countries such as Indonesia and Thailand. All manufacturing is outsourced to third parties.
Revenue and EBITDA for the year ended 30 June 2012 were £22.5m and £3.5m respectively with growth of 10% estimated for the year to 30 June 2013. As at 30 June 2012, Rafferty's Garden had gross assets of £12.5m.
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 Plc, 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 commented:
"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."
Jeremy Samuel, Anacacia Capital's Managing Director and lead director on Rafferty's Garden said:
"We are grateful for the extraordinary efforts of the Rafferty's team and our loyal customers and look forward to continuing to see the business flourish under PZ Cussons' stewardship."
Notes
1. All sterling amounts translated from A$ at 1.66.
2. Depreciation and amortisation are negligible. EBIT for the year to 30 June 2012 was £3.5m.
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For further information contact:
PZ Cussons Plc |
Tel: 0161 435 1236 |
Brandon Leigh - Chief Financial Officer |
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College Hill |
Tel: 020 7457 2020 |
Toby Bates / Tim Linacre |
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Note to editors
PZ Cussons Plc is listed on the London Stock Exchange with a market capitalisation of £1.5bn. The Group operates across Europe, Asia-Pacific and Africa with leading brands in Personal Care, Homecare, Electrical Goods and Food and Nutrition.
PZ Cussons' existing business in Australia comprises the well-known brands of Morning Fresh, Radiant, Duo, Imperial Leather, Original Source and St Tropez.
