Cussons buys Australian yoghurt maker for £44.1m

1st Aug 2014 07:47

Imperial Leather maker PZ Cussons is buying an Australian organic yoghurt maker to expand its food and nutrition business.Cussons said it was buying Five:am for £44.1m with an extra £7.7m due if the business meets targets in the year to 30 June 2015. The group said Five:am was one of the most successful entrants to the Australian food industry over the past decade, with strong retail partnerships across the country and the potential for significant growth domestically and overseas.It makes its products at a factory near Melbourne. Revenue and underlying earnings for the year to 30 June were £19.6m and £3.4m, respectively.The business is being acquired on a cash and debt free basis using existing facilities and is expected to be earnings enhancing in the current financial year.Cussons chief executive Alex Kanellis said: "We are delighted to have acquired such an exciting brand which is an excellent fit with PZ Cussons' existing presence in the fast growing core food and nutrition category."Following the acquisition, our balance sheet remains strong, giving us the capacity to take advantage of further investment opportunities as they arise."David Prior, founder and former owner of Five:am said: "The cultural fit with PZ Cussons was apparent immediately and I am sure the business will flourish under its ownership. "I am very pleased to be maintaining an involvement in Five:am for a period post-completion and am looking forward to working with Alex and his team over the coming months."PW