PZ Cussons Acquires St. Tropez Holdings

PZ Cussons Plc has acquired St Tropez Holdings Limited from UK private equity group LDC in a $98.8 million cash deal.

St Tropez is the UK’s leading sunless tanning product range consisting of lotions, mousses, sprays and other products serving consumers who wish to achieve a safe, natural looking tan without the dangers of sun bathing or sun beds.

More than 80% of St Tropez’s sales are within the UK with Australia and the U.S. also growing markets for the brand. Distribution in the UK is mainly into Boots, Superdrug, Debenhams, Sainsbury’s, House of Fraser and John Lewis, as well as through major salons.

The St Tropez retail range comprises approximately 30 products organized across self tan, gradual tan and wash off varieties, complemented by tan optimizing products. All manufacturing is outsourced to third parties, according to Cussons.

Revenue and earnings before depreciation, amortisation, interest and tax for the year ended 31 July 2010 were $32.7 and $11.7 million respectively. As at 31 July 2010, St Tropez Holdings Limited had gross assets of $76 million, including $66.6 million of goodwill.

The 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, Cussons reported.

“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,” said Alex Kanellis, chief executive of PZ Cussons Plc. “We see good growth opportunities, both in the UK and overseas, particularly by linking the strategy to that of The Sanctuary spa brand.”

Michelle Feeney, chief executive of St Tropez, said St Tropez is going into “a great home. PZ Cussons offers a synergistic opportunity for growth particularly in conjunction with The Sanctuary and will add the scaleability that the brand needs to become a truly international player.”