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PZ Cussons acquires Childs Farm in a 36.8-million-pound deal

By Danielle Wightman-Stone

21 Mar 2022

British consumer goods company PZ Cussons has acquired a 92 percent interest in market-leading baby and child personal care brand Childs Farm.

In a statement, PZ Cussons said that Childs Farm is “highly complementary” to its strategic focus on its core baby and hygiene categories and it will leverage its brand building capabilities to improve its UK leadership position while also looking to “capture its significant international potential”.

The details of the deal, show that PZ Cussons Acquisition Co Limited, an indirect subsidiary of PZ Cussons, acquired the entire issued share capital of Tadley Holdings Limited for 36.8 million pounds, which included the repayment of 3.1 million pounds of shareholder loans, based on an enterprise value of 40 million pounds.

In addition, Childs Farm's founder, Joanna Jensen, has invested 3.3 million pounds of the proceeds of the sale to acquire 8.1 percent of the PZ Cussons subsidiary that completed the acquisition, with PZ Cussons adding that Jensen will continue as a “champion of the brand, in both the UK and abroad”. The company also added that there is also an agreed path to full ownership for PZ Cussons by the end of May 2025.

Childs Farm is the UK’s leading baby and child personal care brand and was launched by Jensen as a solution to her own daughters’ sensitive and eczema-prone skin. It offers cruelty-free and vegan products that are natural, sustainable and sensitive for babies and children. The product range includes bath and shower, skincare and haircare products.

Jonathan Myers, chief executive officer of PZ Cussons, said in a statement: “The foundations of our new strategy ‘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 are delighted to take this important step to accelerate growth in our core categories and priority markets. Over the past decade, Joanna and her talented team have built a category-leading brand, loved by millions of parents seeking the very highest quality products for their children.

“Childs Farm is a clear leader in sustainability, demonstrating that we share a strong ethos, as PZ Cussons journeys towards our own B Corp ambition. We look forward to welcoming Childs Farm to the PZ Cussons family as a Must Win Brand, and to driving the next stage of its growth both in the UK, and beyond.”

Jensen added: “I am incredibly proud of the brand that Childs Farm has become, and what the team at The Barn have achieved to bring natural, sustainable sensitive skincare to the little ones of Britain and beyond. It is clear to me that in PZ Cussons, with our shared vision for the brand and cultural fit, we have found a fantastic partner, and the team and I look forward to working with them to take the business to the next level.”

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