PZ Cussons buys fake tan firm

27th Sep 2010 07:34

Consumer products group PZ Cussons is to buy fake tan products specialist St. Tropez Holdings.The Imperial Leather soap owner is paying £62.5m to private equity group LDC to get its hands on St. Tropez which has a product range that includes lotions, mousses, sprays and other products serving consumers who wish to achieve a safe, natural looking tan without roasting on a sun bed or on the beach.More than four-fifths of the acquired company's sales are within the UK, mainly through Boots, Superdrug, Debenhams, Sainsbury's, House of Fraser and John Lewis, though it has an expanding presence in Australia and the US also.St. Tropez's revenue and earnings before depreciation, amortisation, interest and tax for the year ended 31 July 2010 were £20.7m and £7.4m respectively. As at 31 July 2010, St. Tropez Holdings Limited had gross assets of £48.1m, including £42.1m of goodwill.The acquisition is expected to be earnings enhancing in the current financial year."The acquisition of the St. Tropez brand represents an excellent strategic opportunity for PZ Cussons and further strengthens our portfolio of masstige brands which includes The Sanctuary and Charles Worthington. We see good growth opportunities, both in the UK and overseas, particularly by linking the strategy to that of The Sanctuary spa brand," said Alex Kanellis, chief executive of PZ Cussons.