Sabre sells Australia’s Fudge hair care to PZ Cussons
Sabre has sold Australia’s Fudge hair care brand to PZ Cussons, the company behind Imperial Leather Soap, for GBP25.5 million ($39.5 million). The acquisition is intended to increase PZ Cussons’ exposure to the male grooming sector. Its product portfolio is currently made up predominantly of female beauty brands.
Analysts told the Financial Times that the deal was priced at a very attractive multiple of 1.6x sales, and spoke positively about commercial synergies and access to additional distribution channels.
Half of Fudge's sales are in the UK, with the balance coming from Australia and New Zealand. PZ Cussons plans to expand the brand's geographic base with a view to increasing top-line profit by more than 10% while delivering net profit margins of at least 20%.
There is evidence of private equity interest in the male grooming niche in Asia. In September 2011, China New Enterprise Investment (CNEI) committed $8 million to Men's Life, which designs and distributes a range of skin care and post-shaving products to male consumers in China.
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