LONDON, UK: PZ Cussons plc has acquired the entire issued share capital of Childs Farm. Childs Farm is the UK’s favorite child & child toiletries model based in Basingstoke, Hampshire, the place it employs 35 staff. Founded by mum of two, Joanna Jensen, as an answer to her personal daughters’ delicate and eczema prone skin, the model launched within the UK nationwide in 2014, bringing natural, sustainable, delicate pores and skin and haircare to infants & children.
Joanna Jensen, founding father of Childs Farm, has subsequently made an funding into the PZ Cussons subsidiary that accomplished the acquisition such that PZ Cussons now holds a c.92% curiosity in Childs Farm for a complete consideration of £36.8 million, with an agreed path to full possession by the finish of May 2025.
The consideration will be fully funded by money from existing facilities, reflecting the Group’s strong monetary position.
Childs Farm is the market-leading model in UK child and child private care. Product lines include bath and shower, skincare and haircare, and are all anchored in a pure proposition and appropriate for delicate skin.
The model is extremely complementary to our strategic focus behind the core classes of Baby and Hygiene. As we welcome Childs Farm to the PZ Cussons household as a Must Win Brand, we will leverage our Brand Building capabilities to enhance its UK management position, whereas additionally seeking to seize its significant worldwide potential.
Childs Farm has grown quickly because it began buying and selling in 2011, at extremely attractive gross margins, and has established very strong sustainability credentials, through its cruelty-free and vegan products, and is well-progressed towards B Corp certification. Childs Farm’s founder, Joanna Jensen, will proceed as an investor and as a champion of the brand, in each the UK and abroad.
Jonathan Myers, Chief Executive Officer of PZ Cussons, said: “The foundations of our new technique ‘Building Brands for life, Today and for future generations’ are firmly in place and are delivering results.
As we transition from turnaround to transformation, we’re delighted to take this important step to speed up growth in our core classes and precedence markets. Over the previous decade, Joanna and her talented team have constructed a category-leading brand, loved by millions of parents seeking the very highest high quality merchandise for his or her children.
Childs Farm is a transparent chief in sustainability, demonstrating that we share a strong ethos, as PZ Cussons journeys towards our personal B Corp ambition. We look ahead to welcoming Childs Farm to the PZ Cussons household as a Must Win Brand, and to driving the subsequent stage of its growth each within the UK, and beyond.”
Joanna Jensen, Founder of Childs Farm, said: “I am extremely proud of the model that Childs Farm has become, and what the team at The Barn have achieved to bring natural, sustainable delicate skincare to the little ones of Britain and beyond. It is clear to me that in PZ Cussons, with our shared imaginative and prescient for the model and cultural fit, we have discovered a fantastic partner, and the team and I look ahead to working with them to take the enterprise to the subsequent level.”
PZ Cussons Acquisition Co Limited (“PZCA”), an oblique subsidiary of PZ Cussons, has today acquired the entire issued share capital of Tadley Holdings Limited for consideration of £36.8 million, which incorporates the repayment of £3.1 million of shareholder loans, based on an enterprise worth of £40.0 million.
Childs Farm’s founder, Joanna Jensen, has invested £3.3 million of the proceeds of the sale of her curiosity in Childs Farm in PZCA and now holds 8.1% of the issued share capital of PZCA.
A mechanism is in place which requires the Group to buy Mrs. Jensen’s shareholding in two equal tranches following the finish of the 31 May 2024 and 31 May 2025 monetary years at a price based on a 6.6x a number of of the decrease of precise gross revenue of Childs Farm and its forecast gross profit, topic to a cap of £32.5 million.
For the year ended 31 December 2020 (the Childs Farm monetary year end), the loss earlier than tax and gross assets attributable to Childs Farm were £(0.9) million and £7.5 million, respectively. Reported gross income was £17.4 million.
The transaction is not anticipated to have a materials impact on the Group’s profits for the monetary year ending 31 May 2022 and can be earnings accretive for the monetary year ended 31 May 2024.
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