Mon, 21 Mar 2022 | BUSINESS SALE
PZ Cussons has acquired Childs Farm, a Basingtoke-based baby and child personal care brand, for £36.8 million, a 4.27x multiple of the firm’s £8.6 million in gross profits for the year ending December 31 2020. In that year, the company reported turnover of close to £17.5 million and cut its post-tax losses to around £750,000, compared to £1.9 million in 2019.
Childs Farm was founded in 2011 and has grown rapidly to be a leading baby and child personal care operator, earning sustainability credentials for its vegan and cruelty-free product ranges, which include haircare, skincare and bath and shower products.
The deal sees PZ Cussons, the company behind Imperial Leather, Carex and Original Source, acquire an approximately 92 per cent stake in the business . The deal also sets out a pathway to full ownership by the end of May 2025.
As part of the deal, Childs Farm founder Joanna Jensen has invested £3.3 million of the sale proceeds into an indirect subsidiary of PZ Cussons, PZ Cussons Acquisition Co Limited, and now holds an 8.1 per cent stake in the subsidiary’s issued share capital.
The acquisition fits with PZ Cussons strategic aims in the core baby and hygiene categories. Childs Farm is also well-progressed to attaining B Corp certification, fitting in with PZ Cussons’ aim to gain this certification. Post-acquisition, PZ Cussons aims to use its “brand-building” power to improve Childs Farm’s position within the UK market, as well as to target international expansion.
PZ Cussons CEO Jonathan Myers said: "Childs Farm is a clear leader in sustainability, demonstrating that we share a strong ethos, as PZ Cussons journeys towards our own B Corp ambition. We look forward to welcoming Childs Farm to the PZ Cussons family as a Must Win Brand, and to driving the next stage of its growth both in the UK, and beyond."
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