LONDON ⁘ PZ Cussons is selling its flagship brand, St. Tropez , as part of a wider restructuring drive aimed at slashing debt and optimizing returns against a difficult backdrop.
The British beauty and personal care company said in its third-quarter trading update Wednesday it plans to sell St. Tropez and other assets as it refocuses the portfolio ⁘on where the business can be most competitive, and where it can create most value for shareholders.⁘
PZ Cussons added that it will struggle to realize the growth potential at St. Tropez ⁘given the company⁘s need to allocate resources across its diverse geographic and category footprint.⁘
The company is also selling a group of infrastructure and assets in Africa with the aim of reducing risk and to maximizing shareholder value.
PZ Cussons said the proceeds from any sale will initially be used to invest behind the organic growth of the business and to reduce gross debt further.
While it may be in divestment mode, the group also said it has the ⁘potential and ambition⁘ to pursue targeted acquisitions which are ⁘highly complementary to its more focused category and geographic footprint.⁘
Chief executive officer Jonathan Myers said while the business was stable and growing, it continued to face challenges in one of its key markets, Nigeria.
⁘The macroeconomic challenges and complexities associated with operating in Nigeria are significant, and there is much more to do to unlock the full potential of the business. As such, we have undertaken a strategic review of our brands and geographies and have embarked on plans to transform our portfolio, refocusing on where the business can be most competitive.
