PZ Cussons to sell St Tropez and re-evaluate geographies

PZ Cussons will sell its self-tanning St Tropez brand, in a move to simplify its business.
The company said the label has grown significantly since the company bought it in 2010, and that substantive long-term growth potential remains in the US and new markets, reported Bloomberg.
The company will focus on branded items for babies, as well as beauty and hygiene products, said CEO Jonathan Myers, citing recent acquisition Childs Farm as an example. The UK, Australia, New Zealand and Indonesia are Myers’ priority markets.
The decision to sell St Tropez brand follows a strategic review of the company’s brands and geographies.
PZ Cussons Plc put its Africa business under review to invest in its remaining business and reduce debt.
“We have to have an eye on the future as well as a respect for the past,” said Myers. “There could be many permutations of the outcome, which could include a change in ownership.”
“We’re going to be objective and not emotional in how we make this decision,” he continued. The company’s shares rose 5% on Wednesday, but they’re down 50% over the past 12 months."
The board also found that “the group is too complex for its size, with financial and human resources spread too thinly to generate consistent returns”.
In March, regulators rejected PZ Cussons’s application to buy out the 27% of its Nigerian arm that it doesn’t own, in order to delist it.