PZ Cussons buys out partner in Nigerian milk business

1st Apr 2015 07:58

Consumer products group PZ Cussons has spent £21m in cash to buy out its partner Glanbia in their Nigerian joint venture Nutricima.The move, ending a joint venture that was formed in 2003, will give the FTSE 250 outfit full ownership and control of the evaporated milk, milk powder and UHT business.PZ Cussons said over the last decade Nutricima, which runs two facilities in Nigeria, has developed "market-leading" consumer brands including Nunu, Olympic and Yo."These brands will be further strengthened and developed under the full ownership and control of PZ Cussons," the group said.Nutricima made £1.3m in profits on £74.4m of revenues in the financial year ended 31 May 2014.PZ Cussons used existing facilities to buy-out Glanbia and said it expects the deal to be earnings enhancing in the next financial year."Following the buy-out, our balance sheet remains strong, giving us the capacity to take advantage of further investment opportunities as they arise," said chief executive Alex Kanellis.At the same time, PZ Cussons also entered into a new long-term agreement with Glanbia Ingredients Ireland for the supply of milk-based products to Nutricima.The stock was down 0.1% at 342.2p in early deals on Wednesday.