PZ Cussons buys Australian food brand Five:AM for £44.1 million

PZ Cussons has acquired Australian food brand Five:AM, a statement said on Friday.

The entire issued share capital of Five AM Life Pty Ltd is being acquired for £44.1 million.

It said that an additional consideration of a maximum of £7.7 million pounds is payable subject to the performance of the business in the year ending 30 June 2015.

Five:am is an Australian organic yoghurt brand based in Melbourne. The firm reported revenue of £19.6 million and earnings before interest, tax, depreciation and amortisation of £3.4 million in the year to June 30, 2014.

PZ Cussons said the acquisition is being made using existing facilities and is expected to be earnings-enhancing in the current financial year.

“A combination of industry leading innovation, a compelling brand proposition and a high quality product range has driven Five:am’s growth to date and leaves it uniquely placed to take advantage of the market trends of increasing yoghurt consumption and demand for organic and nutritious products,” said PZ Cussons Chief Executive Alex Kanellis.

The business is being acquired on a cash and debt free basis using existing facilities and is expected to be earnings enhancing in the current financial year.

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