Key Summary
- PZ Cussons will retain St. Tropez after ending its sale process.
- Decision taken by board after careful evaluation of the offers received
- Board sets new direction for St. Tropez with a renewed operating model
The owner of St. Tropez, PZ Cussons, today (June 26) announced that it has decided to hold on to the struggling self-tanning brand more than a year after putting it up for sale.
The leading British manufacturer of personal healthcare products and consumer goods, which owns a raft of labels including Imperial Leather, Carex, and Sanctuary Spa, said the staff will be incentivised to boost the brand's performance.
As announced by PZ Cussons, in April 2024, the group announced its intention to sell the St. Tropez brand, as part of a broader plan to refocus its portfolio.
The Group has since run an extensive auction process which resulted in a number of offers being received. This has been against a backdrop of a challenging performance for the business, with a revenue decline in FY25 in the US and a wider contraction of valuation multiples across the beauty category.
During the course of the process, the board explored a number of alternative business models which could create more value for shareholders.
After careful evaluation of the offers received, the Board has decided to retain St. Tropez and set a new strategic direction for the brand, said the group.
"This will see us establish a focused team to lead the St. Tropez brand across the Group’s international footprint," states a statement released by the group. "This team will be incentivised against the identified value drivers of the business- winning in-market execution including digital activation, re-igniting innovation and rejuvenating the brand’s equity."
Reflecting the recent performance of St. Tropez, the Group expects to record a non-cash impairment with its FY25 results announcement in September. St. Tropez contributed £7.5 million of adjusted operating profit in FY25.
Jonathan Myers, Chief Executive Officer, PZ Cussons said, “Today we are setting a new direction for St. Tropez with a renewed operating model built around a focused and incentivised team, a re-set of our ‘go to market’ capabilities in the US and proven Group operations in our other markets.
"With these changes, we are confident in the future of the brand as part of the PZ Cussons portfolio.”A critical component of the plan includes the formation of a strategic partnership with The Emerson Group."
Emerson is a leading, US-based partner to brand owners and will provide customer management, logistics services and brand activation in the US.
St. Tropez will be integrated into Emerson’s dedicated selling teams to key US retailers, an arrangement which builds on PZ Cussons’ existing relationship with Emerson as the distributor of Childs Farm in the US.
The Board is confident that this partnership will return St. Tropez to growth in the US, combining Emerson’s distribution reach and brand activation capabilities, with the brand equity of St. Tropez.
The move will help address the challenge of our sub-scale operations in the US, as identified previously, as well as further learnings gleaned over recent months. We look forward to strengthening retailer relationships as we work in partnership with Emerson to build the brand.
