Business
Acquisition of Rafferty's Garden
Acquisition of Rafferty's Garden.
About this update from Pz Cussons Plc
[{"type":"text","content":"\n \nRNS Number : 3699I PZ CUSSONS PLC 02 July 2013 \n \n\n \n2 July 2013\n \nPZ Cussons Plc\n(\"the Group\")\n \nACQUISITION OF AUSTRALIAN BABY FOOD BRAND RAFFERTY'S GARDEN\n \nPZ Cussons Plc, a leading international consumer products group, announces the exchange of contracts for the acquisition of Australian baby food brand Rafferty's Garden. The entire issued share capital of Rafferty's Garden Pty Ltd (\"Rafferty's Garden\") is being acquired from Australian private equity firm Anacacia for £42.2m with completion to follow within a short period.\n \nRafferty's Garden is Australia's leading premium nutritious baby food brand with approximately 40% share of the wet baby food market, as well as growing shares in the infant dry and snacks market. An export business is in the early stages of development to countries such as Indonesia and Thailand. All manufacturing is outsourced to third parties.\n \nRevenue and EBITDA for the year ended 30 June 2012 were £22.5m and £3.5m respectively with growth of 10% estimated for the year to 30 June 2013. As at 30 June 2012, Rafferty's Garden had gross assets of £12.5m.\n \nThe business is being acquired on a cash and debt free basis from cash and existing facilities and is expected to be earnings enhancing in the current financial year.\n \nAlex Kanellis, Chief Executive of PZ Cussons Plc, said:\n \n\"The acquisition of Rafferty's Garden marks the Group's entry into the food and nutrition category in Asia-Pacific and the addition of another leading brand to the Group's portfolio. This leading position together with an exciting pipeline of new products provides the platform for further growth within Australia.\n \nIn addition, PZ Cussons' distribution in countries such as Indonesia and Thailand, together with our understanding of consumers in those markets through our leading Cussons Baby brand, will enable the geographic expansion of Rafferty's Garden to be maximised.\n \nFollowing this acquisition our balance sheet remains strong giving us flexibility for further investment opportunities as they arise.\"\n \nMichael Tinkler, Managing Director of Rafferty's Garden commented:\n \n\"PZ Cussons is a great fit for our business and we are looking forward to working with them to service our existing stakeholders as well as expa...