LONDON: PZ Cussons plc announced Wednesday the sale of its 50% stake in Nigerian edible oils business PZ Wilmar to joint venture partner Wilmar International Limited for $70 million (£51 million).
The sale, part of a broader portfolio transformation, is expected to net approximately $64 million (£47 million) after taxes and fees. Proceeds will be used to reduce gross debt, improving the company’s financial metrics. The deal, pending regulatory approvals, is set to close in late 2025.
PZ Wilmar, established in 2010, produces market-leading cooking oil brands Mamador and Devon King’s in Nigeria. The joint venture contributed £4.7 million to PZ Cussons’ adjusted operating profit in the first half of FY25.
CEO Jonathan Myers said the sale reduces exposure to Nigerian market risks and strengthens the company’s balance sheet. “We are exiting a non-core category while ensuring continuity for colleagues and operations,” he said.
The company also narrowed its FY25 adjusted operating profit forecast to £52 million–£55 million, citing higher costs in its U.K. business and weaker performance by its U.S. St. Tropez brand. Full-year revenue is expected to reach about £505 million, an 8% like-for-like increase.
PZ Cussons will report full FY25 results in September.
Standard Bank, Latham & Watkins LLP and Udo Udoma & Belo-Osagie advised on the transaction.