LONDON — PZ Cussons plc, the U.K.-based personal care and consumer goods firm, has acquired self-tanning brand St. Tropez for 62.5 million pounds, or $98.9 million at current exchange in cash, the company said Monday.
PZ Cussons, whose portfolio includes The Sanctuary spa products brand and Charles Worthington hair care, acquired St. Tropez from Lloyds TSB Development Capital on a cash and debt-free basis.
“The acquisition of the St. Tropez brand represents an excellent strategic opportunity for PZ Cussons, and further strengthens our portfolio of masstige brands,” stated Alex Kanellis, chief executive officer of PZ Cussons. “We see good growth opportunities, both in the U.K. and overseas, particularly by linking the strategy to that of The Sanctuary spa brand.”
Michelle Feeney, ceo of St. Tropez, will stay at the company in her current role. “There’s a lot of synergy between the St. Tropez and The Sanctuary brands,” said Feeney. “We’re the third masstige brand in [PZ Cussons’] stable, and they’ve acquired companies of a similar size.”
Feeney added that St. Tropez stands to benefit from PZ Cussons’ research-and-development capabilities and its distribution network, and said St. Tropez soon plans to enter the Polish market, alongside increasing its market penetration of the U.K. and Ireland. Similarly, Feeney said, The Sanctuary brand would benefit from St. Tropez’s distribution network in markets such as the U.S., where St. Tropez is carried through channels like QVC, Sephora, Blue Mercury and Spa Nordstrom.
PZ Cussons added that during the year ended in July, St. Tropez Holdings Ltd. saw revenues of 20.7 million pounds, or $32.8 million, and earnings before interest, taxes, depreciation and amortization of 7.4 million pounds, or $11.7 million. The company produces about 30 products across three categories: Self-tanning, gradual tanning and wash-off tanning items, along with tan-optimizing products. The U.K. represents 80 percent of St. Tropez’s sales, and the company said Australia and the U.S. are growing markets.
Lloyds TSB Development Capital initially announced in May that it was putting St. Tropez on the block.