Last checked at 5 Jan 2012 07:00
5 January 2012
PZ Cussons Plc
ACQUISITION OF FUDGE HAIR CARE BRAND
PZ Cussons Plc, a leading consumer products group in Europe, Asia and Africa, announces the exchange of contracts for the acquisition through its beauty division of the Fudge hair care brand from Australian-based Sabre Group.
The brand and associated inventory are being acquired for a consideration of £25.5m in cash with completion expected by the end of January following the satisfaction of certain regulatory obligations.
Established in 1991, Fudge is a leading premium hair care brand, sold predominantly through salon distribution in the UK, Australia and New Zealand. It is best known for its styling range including the iconic 'Hair Shaper' product.
Fudge will join the portfolio of brands within PZ Cussons Beauty, the group's recently formed beauty division, which currently comprises St Tropez, Sanctuary and Charles Worthington.
Revenue for the year ended 30 June 2011 was £15.7m. Approximately 50% of Fudge sales are currently in the UK and Europe and 50% in Australia and New Zealand.
Alex Kanellis, Chief Executive of PZ Cussons Plc, said:
"The acquisition of Fudge further strengthens our newly formed beauty division and broadens its category participation. The geographic and distribution footprint of Fudge is a perfect fit with the current brand portfolio and we see further opportunity to develop the brand's international potential.
Following this acquisition our balance sheet remains strong giving us flexibility for further investment opportunities as they arise."
Michelle Feeney, Chief Executive of PZ Cussons Beauty, said:
"We are delighted to be acquiring such a young, vibrant brand and I am very excited about its prospects and untapped potential. Fudge is a natural fit for our portfolio as we continue to bring well-loved brands back to the forefront and make beauty accessible to all."
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For further information contact:
PZ Cussons Plc Tel: 0161 435 1016
Brandon Leigh - Finance Director
MHP Communications Tel: 020 3128 8100
John Olsen / James White