PZ Cussons plc, a leading international consumer products group, has announced that it has bought-out Glanbia’s 50 percent stake in Nutricima, the Nigerian joint venture between Glanbia and
PZ Cussons, for £21 million 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 May 31. 2014, were £74.4 million, £3.2 million and £1.3 million, respectively. Gross assets at May 31, 2014 were £57.9 million.
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, 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.”
