Alantra advises the UK’s No. 1 selling baby and child personal care brand, Childs Farm, on its sale to PZ Cussons plc
SECTORConsumer Goods & Retail
UK – Alantra, the global investment banking firm, has advised the shareholders of Childs Farm, the UK’s No. 1 baby and child personal care brand, on the sale of the business to PZ Cussons plc, based on an enterprise value of £40.0m.
Childs Farm is the market-leading brand in UK baby and child personal care. Product lines include bath and shower, skincare and haircare, and are all anchored in a natural proposition and suitable for sensitive skin.
The brand is highly complementary to PZ Cussons’ strategic focus behind the core categories of Baby and Hygiene. Childs Farm will become one of its Must Win Brands and PZ Cussons will leverage its brand building capabilities to improve Childs Farm’s UK leadership position, while also seeking to capture its significant international potential.
Childs Farm has grown rapidly since it started trading in 2011, at highly attractive gross margins, and has established very strong sustainability credentials, through its cruelty-free and vegan products, and is well-progressed towards B Corp certification. Childs Farm’s founder, Joanna Jensen, will continue as an investor and as a champion of the brand, in both the UK and abroad.
The sale of Childs Farm underscores Alantra’s position as a leading mid-market M&A advisor in the Health & Beauty sector and follows advising on the sales of Hairburst to JD Sports plc and Laboratorios Forenqui to Sherpa Capital, and advising Medik8 and Absolute Collagen on investment from Inflexion and Livingbridge respectively over the last 15 months.
Matthew Wiseman, Partner and Head of Consumer in the UK, and Chris Bates, Director, led the deal supported by James Segal and Dominic Barnes.
Matthew Wiseman, Partner and Head of Consumer in the UK, said, “I have huge admiration for Joanna’s achievement in setting up Childs Farm and growing the business to become the UK’s leading children’s toiletries brand. I got to know Joanna after using Childs Farm products to successfully treat my son’s chronic eczema so can testify to their quality! Since then, we’ve met regularly to talk about strategy, when would be the right time to partner with another business, and preparing for a transaction. Partnering with PZ Cussons is the natural evolution for the business and a tremendous achievement for Joanna and her team. Jonathan Myers and PZ Cussons have huge respect for the Childs Farm brand and share the same values and ethos. Together, they can build on the incredible love the brand engenders with consumers and continue to grow in the UK and beyond.”
He continued, “Many consumers now only want to use skin care formulations that are safe and clinically proven. Businesses like Childs Farm, that are born from their founders’ determination to solve personal problems, have a high level of affinity and trust with their customers. Financial investors are keen to use their skills to strengthen such businesses and expand their markets while personal care operators, which struggle to replicate the product innovation and associated brand loyalty, see an opportunity to accelerate global growth.”
Joanna Jensen, Founder of Childs Farm, said, “I am incredibly proud of the brand that Childs Farm has become, and what the team at The Barn have achieved to bring natural, sustainable sensitive skincare to the little ones of Britain and beyond. It is clear to me that in PZ Cussons, with our shared vision for the brand and cultural fit, we have found a fantastic partner, and the team and I look forward to working with them to take the business to the next level.”
Jonathan Myers, Chief Executive Officer of PZ Cussons, said, “The foundations of our new strategy ‘Building Brands for life, Today and for future generations’ are firmly in place and are delivering results. As we transition from turnaround to transformation, we are delighted to take this important step to accelerate growth in our core categories and priority markets. Over the past decade, Joanna and her talented team have built a category-leading brand, loved by millions of parents seeking the very highest quality products for their children. Childs Farm is a clear leader in sustainability, demonstrating that we share a strong ethos, as PZ Cussons journeys towards our own B Corp ambition. We look forward to welcoming Childs Farm to the PZ Cussons family as a Must Win Brand, and to driving the next stage of its growth both in the UK, and beyond.”
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