# PZ Cussons plc Proposed sale of Minerva and Luksja brand as part of new strategy

- Link: https://www.directorstalkinterviews.com/pz-cussons-plc-proposed-sale-of-minerva-and-luksja-brand-as-part-of-new-strategy/412791409
- Published: 2019-08-29T07:30:31+01:00
- Author: Amilia Stone

**PZ Cussons plc **(LON:PZC), a leading international consumer products group, has
today announced that, in line with the Company’s newly stated strategic direction,
it has entered into agreements to sell its Greek food subsidiary Minerva and its
Polish personal care brand Luksja.

**Sale of Minerva**

PZ Cussons has exchanged contracts for the sale of 100% of the share capital of 
its Greek subsidiary, Minerva S.A. Edible Oils and Food Enterprises (“Minerva”) 
to Mirties Enterprises Company Limited, a company controlled by Diorama Investments
SICAR SA (“Diorama”), a Luxembourg investment company, regulated by Luxembourg’s
Capital Markets Commission. Diorama has appointed Deca Investments AIFM (“Deca”)
as its external fund manager.

Minerva is being sold for a consideration of £41.0 million^(1) in cash, payable 
upon completion. Completion will occur upon draw down of funds by the purchaser 
from its financing bank which is expected within the next few weeks. The proceeds
from the sale will be used to reduce existing debt in the business and drive focused
investment in our core brands as part of the Group’s new strategy to ‘Focus, Scale
and Accelerate’.

Founded in 1904, Minerva was the first company to sell branded packaged olive oil
in Greece. Over a rich history spanning more than 115 years, Minerva has established
itself as an iconic brand and holds leading positions in each of the olive oil, 
spreads, vinegar and cheese categories.  Minerva’s products are marketed under 10
well-known brands and the business has export activities across a number of countries.

The profits and gross assets attributable to Minerva are £0.5m^(2) and £53.6m^(3)
respectively, as disclosed in Minerva’s latest published local accounts for the 
2018 financial year. PZ Cussons’ results for the year ended 31 May 2019 included
Minerva Sales and EBITDA of £44.1m and £3.3m respectively. The sale of Minerva would
reduce the Group’s FY19 PBT by c.£1.8m on a pro forma basis_._

The sale of Minerva constitutes a class 2 transaction for the purposes of the UK
Listing Rules. A further announcement regarding completion of the transaction will
be made at the appropriate time.

**Sale of Luksja**

On 12 August, PZ Cussons also exchanged contracts for the sale of Polish personal
care brand, Luksja, together with all associated inventory, to Athens based personal
care company, Sarantis Group (“Sarantis”). PZ Cussons and Sarantis have also agreed
to enter into a distribution agreement whereby Sarantis will distribute certain 
PZ Cussons’ core brands (which include Carex, Original Source and Morning Fresh)
in Poland and Central and Eastern Europe. 

Completion of the transaction and commencement of the distribution agreement is 
subject to competition clearance being granted in relevant territories, including
Poland. Following completion, PZ Cussons’ on-the-ground operations in Poland will
be wound down.

> **Alex Kanellis, CEO of PZ Cussons said**:
> “The proposed sale of Minerva and Luksja forms part of PZ Cussons’ new strategy
> to ‘Focus, Scale and Accelerate’, announced along with our final FY19 results 
> on 23 July 2019. 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.
> The sale of Minerva provides additional proceeds to continue to drive our strategy
> forward. Deca is an excellent partner for Minerva’s future growth prospects and
> I would like to thank the Minerva team for their hard work and dedication during
> their time with us and wish them every success in the future.
> Luksja is a great fit with Sarantis’s portfolio and I would like to thank the 
> Luksja team for their important contribution to the development of PZ Cussons 
> Poland in recent years.”

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