PZ Cussons Australia and New Zealand, part of the international consumer products group PZ Cussons Plc, has bought the organic yoghurt brand, five:am for £44.1 million ($79.7m).
PZ Cussons, which last year also acquired Australian premium baby food brand, Rafferty’s Garden, said the five:am deal, which is expected to be completed within a short period, strengthened its position in the food and nutrition category.
five:am was founded by Australian entrepreneur David Prior in 2011. The Melbourne-based company manufactures a range of premium organic yoghurt products which are marketed through major supermarkets and food stores across the country and is one of the fastest growing organic food brands in Australia.
PZ Cussons said it is buying five:am on a cash and debt free basis and is expected to be earnings enhancing in the current financial year.
“It’s another exciting step for the Australian business and reflects our strategy of developing and acquiring leading brands in their respective categories,” Nigel Simonsz, CEO of PZ Cussons Australia and New Zealand, said.
“We see significant potential for five:am and, together with Rafferty’s Garden, we are building a strong portfolio of nutritious Australian food brands alongside our well-known brands in personal care and home care,” he said.
Alex Kanellis, CEO of PZ Cussons Plc, said five:am was uniquely placed to take advantage of the market trends of increasing yoghurt consumption and demand for organic and nutritious products.
"We are delighted to have acquired such an exciting brand. Since its launch in 2011, five:am has established a leading position in the Australian organic food category. A combination of industry leading innovation, a compelling brand proposition and a high quality product range has driven the business’ growth to date,” he said.
Prior, five:am's founder, will continue to be involved with the business following completion of the deal, working closely with the PZ Cussons management team to ensure a smooth transition of operations.
“The cultural fit with PZ Cussons was apparent immediately and I’m sure the business will flourish under its ownership,” Prior said.
five:am, which was founded by Australian entrepreneur David Prior in 2011, has been bought by PZ Cussons for $80 million.
