Last checked at 20 Feb 2013 07:00
20 February 2013
PZ Cussons Plc
SALE OF POLISH HOME CARE BRANDS
PZ Cussons Plc, a leading consumer products group in Europe, Asia and Africa, announces the exchange of contracts for the sale of its local Polish Home Care brands to Henkel.
The Polish Home Care brands are being sold for a consideration of £46.6m in cash. Completion is subject to merger control clearances in Poland and Ukraine, processes that are anticipated to take approximately six months.
Polish Home Care brands
The Polish Home Care brands comprise 'E' and certain smaller brands and are present in the laundry detergent, fabric conditioner and washing up liquid product categories in Poland, central and eastern Europe.
In the year ended 31 May 2012, revenue generated by these brands was £51.4m. As a result of restructuring the business to focus solely on the Personal Care category, the loss of operating profit to the Group on a full year basis associated with the sale of the brands is estimated to be c. £3.5m. The gross assets that are the subject of the transaction as recorded in the Group's accounts are £ nil.
The proceeds of the transaction will be used either to reduce existing debt or within normal business operations.
Alex Kanellis, Chief Executive of PZ Cussons Plc, said:
"I am pleased to be able to announce the exchange of contracts for the conditional sale of our Polish Home Care brands. On successful completion of the transaction, the divestment will enable us to focus on developing the Personal Care business in Poland and will further strengthen our balance sheet, improving our flexibility to take advantage of new investment opportunities as they arise.
Subject to receipt of the necessary merger control clearances, a further announcement regarding completion of the transaction will be made to shareholders at the appropriate time."
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For further information contact:
PZ Cussons Plc Tel: 0161 435 1236
Brandon Leigh - Finance Director
MHP Communications Tel: 020 3128 8100
John Olsen / James White