Rafferty's Garden has been sold to soap maker, Cussons.

Rafferty's Garden bought by British soap company for $70 million

3 July 2013

Australian baby food manufacturer, Rafferty's Garden, has been sold to Cussons by private equity firm Anacacia Capital in a deal worth just over $70 million.

The deal follows closely on the heels of a proposed purchase of the company by competing baby food maker Heinz, which was last month rejected by the Australian Competition and Consumer Commission (ACCC).

The consumer products company PZ Cussons, sells under the Morning Fresh, Radiant, Duo, Imperial Leather, Original Source and St Tropez brands in Australia.

Rafferty's Garden was founded in 2008 by Adrian Pike, who sold the company in 2010 to Australian private equity company Anacacia Capital.

It holds approximately 40 per cent share of the wet baby food market, as well as growing shares in the infant dry and snacks market.

Last month, the ACCC rejected the company's acquisition by Heinz because the companies were the two largest suppliers of wet and dry infant food in Australia. According to the ACCC, the merged entity would have accounted for around 80 per cent of the share of sales in the wet infant food market and around 70 per cent in infant cereals and infant snacks.

Alex Kanellis, chief executive of PZ Cussons, said the acquisition of Rafferty's Garden marked the company's entry into the food and nutrition category in Asia-Pacific and the addition of another leading brand to its portfolio.

“This leading position, together with an exciting pipeline of new products, provides the platform for further growth within Australia,” he said.

“In addition, PZ Cussons' distribution in countries such as Indonesia and Thailand, together with our understanding of consumers in those markets through our leading Cussons Baby brand, will enable the geographic expansion of Rafferty's Garden to be maximised.”

Michael Tinkler, managing director of Rafferty's Garden, said that PZ Cussons was a great fit for the business and the company was “looking forward to working with them to service our existing stakeholders as well as expand the business internationally".