PZ Cussons acquires premium Australian food brand five:am
PZ Cussons Australia and New Zealand, part of leading international consumer products group PZ Cussons Plc, has added to its growing food and nutrition category in the Asia Pacific region with the purchase of a leading Australian organic yoghurt brand, five:am.
five:am has been one of the most successful entrants to the Australian food industry over the past decade. The business has strong retail partnerships across the country and the potential for significant growth, both within Australia and other markets. Its products are manufactured at its facility in south-east Melbourne.
Acquisition ‘adds to momentum’ in food and nutrition category
PZ Cussons said the acquisition of five:am – which is expected to be completed within a short period – strengthens its position in the food and nutrition category following the purchase of premium baby food brand, Rafferty’s Garden in July 2013.
PZ Cussons’ business in Australia comprises well-known brands Morning Fresh, Radiant, Duo, Imperial Leather, Original Source, St Tropez, Sanctuary Spa, Fudge, Fudge Urban and Rafferty’s Garden. PZ Cussons Plc is listed on the London Stock Exchange with a market capitalisation of £1.5bn. The Group operates across Europe, Asia-Pacific and Africa with leading brands in Personal Care, Homecare, Electrical Goods and Food and Nutrition.
Nigel Simonsz, Chief Executive of PZ Cussons Australia and New Zealand, said the acquisition would add to the strong momentum the Australian domestic business has achieved in the food and nutrition category in the past 12 months, as well as across the broader business.
“It’s another exciting step for the Australian business and reflects our strategy of developing and acquiring leading brands in their respective categories,” Mr Simonsz said. “We see significant potential for five:am and, together with Rafferty’s Garden, we are building a strong portfolio of nutritious Australian food brands alongside our well-known brands in personal care and home care such as Radiant, Morning Fresh, Original Source and Imperial Leather,” he said.
five:am a ‘leading’ brand in Australian organic food category
Alex Kanellis, Chief Executive of PZ Cussons Plc, said five:am was “uniquely placed” to take advantage of the market trends of increasing yoghurt consumption and demand for organic and nutritious products.
“We are delighted to have acquired such an exciting brand,” Mr Kanellis said. “Since its launch in 2011, five:am has established a leading position in the Australian organic food category. A combination of industry leading innovation, a compelling brand proposition and a high quality product range has driven the business’ growth to date,” he said.
five:am was founded by Australian entrepreneur David Prior in 2011. The fastest growing organic food brand in Australia, it manufactures a range of premium organic yoghurt products which are marketed through major supermarkets and food stores across the country. five:am’s products have won a number of industry awards, including multiple awards for best organic dairy product in Australia.
Mr Prior will continue to be involved with the business following completion of the deal, working closely with the PZ Cussons management team to ensure a smooth transition of operations.
“I’m delighted that five:am has chosen a great home for the future,” Mr Prior said. “The cultural fit with PZ Cussons was apparent immediately and I’m sure the business will flourish under its ownership,” he said.
five:am is being acquired on a cash and debt free basis and is expected to be earnings enhancing in the current financial year.