PZ Cussons pulls out of auctioning off self-tanning brand St Tropez
The Manchester-based group said it was confident in the future of the brand within its portfolio.
The owner of St Tropez has decided to hold on to the struggling self-tanning brand more than a year after putting it up for sale.
PZ Cussons, the consumer goods firm which owns a raft of labels including Imperial Leather, Carex, and Sanctuary Spa, said staff will be incentivised to boost the brand’s performance.
It told investors in April last year that it was looking to sell St Tropez to an owner “better placed to capture the brand’s significant long-term potential”.
PZ Cussons bought the beauty business for £62.5 million in 2010, and it has become one of the UK’s biggest self-tanning brands sold in retailers across the country.
However, it has struggled against weaker demand in the US, reporting a double-digit drop in sales over the latest financial year.
The Manchester-based company told investors on Thursday that it had run an “extensive auction process which resulted in a number of offers being received”.
But at the same time, the board explored alternative options which it said “could create more value for shareholders” than accepting any of the offers on the table.
“As such, and after careful evaluation of the offers received, the board has decided to retain St Tropez and set a new strategic direction for the brand,” it said.
The team leading the brand will be incentivised to drive its value – while it also set out plans to partner with a US-based business to boost sales across the nation.
PZ Cussons’ chief executive Jonathan Myers said the changes mean he is “confident in the future of the brand as part of the PZ Cussons portfolio”.