Buy-out of Glanbia Plc's stake in Nutricima JV

RNS Number : 0899J

PZ CUSSONS PLC

01 April 2015

 



1 April 2015

PZ CUSSONS PLC

BUY-OUT OF GLANBIA PLC's STAKE IN NUTRICIMA JOINT VENTURE

PZ Cussons Plc, a leading international consumer products group, is pleased to announce that it has bought-out Glanbia's 50% stake in Nutricima, the Nigerian joint venture between Glanbia and PZ Cussons, for £21m in cash, giving PZ Cussons full ownership and control.  PZ Cussons has also entered into a new long-term agreement with Glanbia Ingredients Ireland for the supply of milk-based products to Nutricima.

The Nutricima joint venture with Glanbia was formed in 2003 to build a facility in Nigeria to supply evaporated milk and milk powder to the local Nigerian market.  A second facility for the manufacture of UHT products was opened in 2009. Over the last decade, Nutricima 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 joint venture's revenues, EBITDA and PBT for the year ended 31 May 2014 were £74.4m, £3.2m and £1.3m respectively.  Gross assets at 31 May 2014 were £57.9m.

The buy-out has been completed using existing facilities and is expected to be earnings enhancing in the next financial year.

Alex Kanellis, Chief Executive of PZ Cussons Plc, said:

"We are pleased to have taken full control of Nutricima.  PZ Cussons is committed to the long term growth of the business and looks forward to the continued strengthening and development of its brands.  We are also pleased to have entered into a new agreement with Glanbia Ingredients Ireland which ensures continuing supply of both existing and innovative new products.

Following the buy-out, our balance sheet remains strong, giving us the capacity to take advantage of further investment opportunities as they arise."

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For further information contact:

PZ Cussons Plc
Brandon Leigh - Chief Financial Officer	0161 435 1236
Instinctif Partners
Tim Linacre	020 7457 2020

Notes to editors:

PZ Cussons Plc is listed on the London Stock Exchange with a market capitalisation of £1.4bn. The Group operates across Europe, Asia-Pacific and Africa with leading brands in Personal Care, Homecare, Electrical Goods and Food and Nutrition.

 

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