(Alliance News) - PZ Cussons PLC on Monday said it has acquired Basingstoke, England-based baby and child personal care brand Childs Farm for GBP36.8 million in cash.
The Manchester-based personal and home care and beauty products firm will hold a 92% interest in Childs Farm, as the founder Joanna Jensen has made an investment into the subsidiary PZ Cussons Acquisition Co Ltd which completed the acquisition.
The group and Jensen have agreed that PZ Cussons will take up full ownership by the end of May 2025, by purchasing Jensen's shareholding in two equal tranches by the end of May 2024 and May 2025.
The price will be based on a 6.6% multiple of the lower of actual gross profit from Childs Farm and its forecast gross profit, and will be capped at GBP32.5 million.
PZ Cussons said the acquisition of Childs Farm will be complementary to its strategic focus for its core categories of Baby and Hygiene.
"The foundations of our new strategy 'Building Brands for life, Today and for future generations' are firmly in place and are delivering results. As we transition from turnaround to transformation, we are delighted to take this important step to accelerate growth in our core categories and priority markets," said Chief Executive Officer Jonathan Myers.
Shares in PZ Cussons were up 0.6% at 191.80 pence each on Monday morning in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Pz Cussons (PZC)