St Tropez seen as a good addition to the PZ Cussons portfolio
Soap manufacturer PZ Cussons has revealed that it has bought tanning brand St Tropez from its private equity owner LDC. PZ Cussons announced that it has paid £62.5m in a cash deal for the company which sold £20.7m worth of self-tanning products in the year ending July 2010.
LDC had bought St Tropez, founded in Los Angeles, four years ago for £70m and relaunched the products with new packaging which helped the sprays become famous worldwide. When LDC struck a deal for distribution of St Tropez in salons and spas throughout the UK, British consumers became extremely loyal to the brand.
The manufacturer of Imperial Leather soaps and Carex handwashes, PZ Cussons believes that St Tropez is an ideal brand to add to its portfolio of products which also includes The Sanctuary spa brand. “We see good growth opportunities, both in the UK and overseas, particularly by linking the strategy to that of The Sanctuary." PZ Cussons has said that the acquisition is expected to be "earnings enhancing" in the current financial year.
PZ Cussons chief executive, Alex Kanellis commented: “The acquisition of the St Tropez brand represents an excellent strategic opportunity for PZ Cussons and further strengthens our portfolio of ‘masstige’ brands. We see good growth opportunities, both in the UK and overseas Following this acquisition our balance sheet remains strong giving us flexibility for further investment opportunities as they arise.”
Michelle Feeney, chief executive of St Tropez added: “I am thrilled that St Tropez is going into such a great home. PZ Cussons offers a synergistic opportunity for growth particularly in conjunction with The Sanctuary and will add the scaleability that the brand needs to become a truly international player.”
Over 80% of St Tropez' sales are currently within the UK, with Australia and the US also growing markets for the brand. Revenue and earnings before depreciation, amortisation, interest and tax for the year ended 31 July 2010 were £20.7m and £7.4m respectively. St Tropez Holdings Limited had gross assets of £48.1m, including £42.1m of goodwill, at 31 July 2010.