Business
Proposed sale of Minerva and Luksja brand
Proposed sale of Minerva and Luksja brand.
About this update from Pz Cussons Plc
[{"type":"text","content":"\n \nRNS Number : 4838K PZ CUSSONS PLC 29 August 2019 \n\nPZ Cussons\n \n(\"PZ Cussons\" or the \"Group\")\n \nProposed sale of Minerva and Luksja brand\n \n \nPZ Cussons Plc, a leading international consumer products group, is pleased to announce that, in line with the Company's newly stated strategic direction, it has entered into agreements to sell its Greek food subsidiary Minerva and its Polish personal care brand Luksja.\n \nSale of Minerva\n \nPZ Cussons has exchanged contracts for the sale of 100% of the share capital of its Greek subsidiary, Minerva S.A. Edible Oils and Food Enterprises (\"Minerva\") to Mirties Enterprises Company Limited, a company controlled by Diorama Investments SICAR SA (\"Diorama\"), a Luxembourg investment company, regulated by Luxembourg's Capital Markets Commission. Diorama has appointed Deca Investments AIFM (\"Deca\") as its external fund manager.\n \nMinerva is being sold for a consideration of £41.0 million1 in cash, payable upon completion. Completion will occur upon draw down of funds by the purchaser from its financing bank which is expected within the next few weeks. The proceeds from the sale will be used to reduce existing debt in the business and drive focused investment in our core brands as part of the Group's new strategy to 'Focus, Scale and Accelerate'. \n \nFounded in 1904, Minerva was the first company to sell branded packaged olive oil in Greece. Over a rich history spanning more than 115 years, Minerva has established itself as an iconic brand and holds leading positions in each of the olive oil, spreads, vinegar and cheese categories. Minerva's products are marketed under 10 well-known brands and the business has export activities across a number of countries.\n \nThe profits and gross assets attributable to Minerva are £0.5m2 and £53.6m3 respectively, as disclosed in Minerva's latest published local accounts for the 2018 financial year. PZ Cussons' results for the year ended 31 May 2019 included Minerva Sales and EBITDA of £44.1m and £3.3m respectively. The sale of Minerva would reduce the Group's FY19 PBT by c.£1.8m on a pro forma basis.\n \nThe sale of Minerva constitutes a class 2 transaction for the purposes of the UK Listing Rules. A further announcement regarding completion of the transactio...