NIGERIA – UK-based consumer products company, PZ Cussons has reached an agreement to divest its Nigerian dairy business, Nutricima to Holland’s Royal FrieslandCampina Nigerian subsidiary, for an undisclosed sum.
PZ Cussons said in a statement to the London Stock Exchange, on which it is listed, that it has exchanged contracts for the sale of the assets associated with Nutricima’s business to FrieslandCapina WAMCO Nigeria.
Nutricima manufactures and distributes beverages in Africa. Its product portfolio includes milk and yoghurt-based drinks such as Nunu, Yo, and Olympic.
Under Nunu brand, the company offers a wide range of powdered, evaporated and ready-to-drink (RTD) milk beverages, while under Yo brand the company offers yoghurt drinks, as well as an RTD yoghurt range.
Financial details of the transaction have not been divulged by either of the companies with completion of the deal subject to receipt of regulatory approvals in Nigeria.
In this regard, FrieslandCampina WAMCO has called an extraordinary general meeting in Lagos on April 21 to discuss the deal following a purchase agreement on March 13.
In addition to this deal, PZ Cussons has also revealed completion of the sale of its Polish personal care brand Luksja to Athens based personal care company Sarantis Group.
As part of the deal, Sarantis has also agreed to distribute certain PZ Cussons’ brands including Carex, Original Source and Morning Fresh in Poland and Central and Eastern Europe.
PZ Cussons executive chair Caroline Silver said, “The proposed sale of Nutricima and the sale of Luksja are further steps forward under our ‘Focus, Scale and Accelerate’ strategy, as we continue to streamline the Group to focus investment on core personal care and beauty brands.
“This will enable us to deliver higher-margin earnings, in geographies which can scale, and support the return of the Group to sustainable, profitable growth.”
In 2019, the consumer goods company revealed that it will sell-off non-core brands and simplify its Nigerian business as part of its newly launched strategy that seeks to improve the company’s balance sheets.