Pz Cussons Regulatory News (PZC)

29 Jan 2008 07:01

PZ CUSSONS PLC29 January 2008 29 JANUARY 2008 PZ CUSSONS PLC ACQUISITION OF THE SANCTUARY BRAND AND SPA FOR £75M PZ Cussons Plc, a leading consumer products group in personal care and householdproducts, announces the acquisition of The Sanctuary Spa Holdings Limited("Sanctuary Spa Holdings") for a consideration of £75m in cash (on a cash anddebt free basis). Sanctuary Spa Holdings comprises two elements: a premium range of beauty andbody care products sold under The Sanctuary brand, representing some 70% ofrevenue, and The Sanctuary Spa, the UK's largest day spa, based in London'sCovent Garden. Over 90% of The Sanctuary personal care products are sold in the UK market wherethe range has grown to become one of the leading beauty and body care brands inthis dynamic and fast growing segment. The range includes shower and bathproducts, salt scrubs, body lotions, body oils and a small but growing skincareline. The exclusively female Sanctuary spa attracts some 64,000 visitors per year, andplays an important part in the development of The Sanctuary range of productsboth through the expertise of the spa personnel and customer feedback. As at the year ended 31st August 2007, Sanctuary Spa Holdings had gross assetsof £26.9m, including £15.8m of goodwill. Revenue and earnings beforedepreciation, amortisation, interest and tax for the year ended 31st August 2007were £26.3m and £6.2m respectively. Profit before tax for the year ended 31stAugust 2007 was £3.9m. The business is being acquired on a cash and debt freebasis. Alex Kanellis, Group Chief Executive of PZ Cussons Plc, said: "The Sanctuary business represents an excellent strategic opportunity for PZCussons, giving us a greater presence in the premium segment of the UK'spersonal care market through an established and well respected brand. It furtherstrengthens our UK position as leader in the Personal Wash category, andbolsters our developed market presence thereby enhancing the balance of theGroup. "We see considerable opportunities to create further value from The Sanctuarybusiness, through combining our new product and brand development expertise withtheirs, developing the brand's international sales, and exploring opportunitiesto develop the spa concept further. There are also synergies to be derived,particularly in the area of supply chain. "Following this acquisition our balance sheet remains strong, giving flexibilityfor further investment opportunities as they arise." PZ Cussons Plc's interim results for the half year to 30th November 2007 havebeen published today - see separate announcement. - Ends - Press Enquiries: PZ Cussons Graham Calder (Deputy Chairman) Brandon Leigh (Finance Director) Hogarth Partnership John Olsen, Sarah MacLeod, Sarah Richardson020 7357 9477 On 29th and 30th January c/o Hogarth. After 30th January to Graham Calder or Brandon Leigh on 0161 491 8000. An analysts' presentation covering PZ Cusson's interim results and theacquisition will be held on 29th January 2008 at 9.30am at the offices of JPMorgan Cazenove, 20 Moorgate, London, EC2R 6DA. This information is provided by RNS The company news service from the London Stock Exchange