Top story
PZ Cussons has expanded its coverage in the UK baby and child personal care category with the acquisition of Childs Farm for £36.8m.
Founded by Joanna Jensen in 2011, the Baskingstoke-based business has grown rapidly to build revenues of £17.4m in 2020.
The brand makes naturally derived bath, shower, skincare and haircare for babies and children and is available in Asda, Morrisons, Sainsbury’s, Tesco, Waitrose, Ocado, Next, Booths, Boots, Superdrug, Co-op, Holland & Barrett and other UK retailers, as well as overseas in Ireland, Australia, China, Hong Kong, Iceland, Malta, Greece, South Africa and Thailand.
PZ Cussons said Childs Farm was “highly complementary” to its strategic focus behind the core categories of baby and hygiene.
The group added it would leverage its brand-building capabilities to improve Childs Farm’s UK leadership position, while also seeking to capture the “significant” international potential.
Jensen will continue as an investor in the business, with PZ Cussons acquiring a 92% stake and agreeing a path to full ownership by 2025.
PZ Cussons CEO Jonathan Myers said: “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.
“Over the past decade, Joanna and her talented team have built a category-leading brand, loved by millions of parents seeking the very highest quality products for their children. Childs Farm is a clear leader in sustainability, demonstrating that we share a strong ethos, as PZ Cussons journeys towards our own B Corp ambition.
“We look forward to welcoming Childs Farm to the PZ Cussons family as a ‘Must Win Brand’, and to driving the next stage of its growth both in the UK, and beyond.”
Jensen added: “I am incredibly proud of the brand that Childs Farm has become, and what the team at The Barn have achieved to bring natural, sustainable sensitive skincare to the little ones of Britain and beyond.
“It is clear to me that in PZ Cussons, with our shared vision for the brand and cultural fit, we have found a fantastic partner, and the team and I look forward to working with them to take the business to the next level.”
The deal is not expected to have a material impact on PZ Cussons’ profits in the financial year ending 31 May 2022.
Shares in the group opened 0.6% higher to 191.8p this morning
Morning update
British American Tobacco has announced two changes to its management board this morning.
Digital and information director Marina Bellini will step down on 31 March and leave the group on 31 July to pursue new opportunities.
Javed Iqbal, area director for the Middle East and South Asia, will suceed Bellini and join the board on 1 April.
CEO Jack Bowles thanked Bellini for her “significant” contribution and welcomed Iqbal to the board.
“As BAT enters a phase of accelerated delivery he is very well positioned to lead the digital and information function. He has extensive experience in leading strategic change across multiple geographies, including systems and process transformation,” he said.
The FTSE 100 started the week 0.5% higher at 7,441.30pts.
Early risers included Hotel Chocolat Group, jumping 8.3% to 420p, Nichols, up 2.4% to 1,375p, and Fever-Tree Drinks, up 2% to 1,880.5p.
Delivery Hero, THG, HelloFresh and McBride all started the week on the wrong foot, falling 2.9% to €43.82, 3.8% to 92.2p, 2.8% to €41.07 and 2.7% to 44p respectively.
This week in the City
The big event of the week is the Spring Statement from Chancellor Rishi Sunak on Wednesday lunchtime, preceded by the latest UK inflation figures from the ONS in the morning.
Other than that it is looking like a very quiet week for food and drink in terms of scheduled market updates.
General Mills releases its latest quarterly numbers on Wednesday in the US, while, on Friday, we get the widely followed monthly GfK consumer confidence index and the ONS retail sales figures for February.
In wider retail, high street bellwether Next publishes its finals on Thursday.
No comments yet