Consumer goods maker PZ Cussons PLC is selling its Greek food subsidiary Minerva and Polish personal care brand Luksja to Athens-based Sarantis Group as part of an effort to streamline the business.
WHO: Luksja is a 30-year-old Polish-based personal care brand consisting of shower gels, bath foams, liquid soaps, and bar soaps with distribution in Eastern Europe. The brand is highly recognized in the market for their high-quality, unique fragrances, and the constant flow of new product launches that respond to consumer trends and needs.
Founded in 1879, UK-based PZ Cussons has grown into a leading consumer brand operating in four categories: personal care and beauty, home care, food and nutrition, and electrical. PZ Cussons Beauty was created in 2010 through combining four acquired beauty brands St.Tropez, Charles Worthington, Sanctuary, and Fudge Professional, creating best-in-class and affordable products in the sunless tanning, hair care, and spa at home markets.
Athens-based Sarantis Group was founded in 1930 and manufactures and distributes cosmetics and toiletries in Greece and Eastern Europe. The parent company also has established a joint venture with the Estée Lauder Companies for the exclusive distribution of Estée Lauder products in Greece, Romania, Bulgaria, and Cyprus.
WHY: The divestment is in line with the company’s newly stated strategy of “Focus, Scale and Accelerate.” PZ Cussons said it intends to use the proceeds from the sale to reduce existing debt and drive investment in core brands. For Sarantis, the acquisition fits perfectly into its product portfolio, strengthens its position as a leading consumer product company, and further supports its geographical presence in the market. Luksja also offers growth opportunities by expanding into adjacent subcategories in the personal care market.
IN THEIR OWN WORDS: “The proposed sale of Minerva and Luksja forms part of PZ Cussons’ new strategy to ‘Focus, Scale and Accelerate,’ announced along with our final results on July 23. We are streamlining the group to focus investment on core Personal Care and Beauty brands to deliver higher margin earnings, in geographies that can scale, with the aim of returning the group to sustainable, profitable growth,” said Chief Executive Officer Alex Kanellis.
Along with its full-year results in July, it announced its new strategy, saying “We cannot rely upon short term economic conditions improving markedly in our key markets and are therefore taking action to reposition the group to return to profitable growth. Our resources and investment will be prioritised behind key categories and brands in only those geographies offering the clearest opportunities. Our cost base will be tightly managed and we will act at pace.”
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