A former banker and horse breeder who started a range of children’s bath products to soothe her daughter’s sensitive skin has made a multimillion windfall after selling the business to PZ Cussons.
Joanna Jensen, 51, started Childs Farm in 2010 from her country barn in Basingstoke, and it has grown rapidly to overtake the traditional market leader Johnson & Johnson after being stocked in Boots and major supermarkets.
PZ Cussons is buying a 92 per cent stake in the brand for £36.8 million, meaning that Jensen, who owns between a quarter and half of the company according to Companies House, will be in line for a cash windfall of between £5.9 million and £15.1 million. She will also receive an 8.1 per cent stake in a new PZ Cussons subsidiary, in exchange for investing £3.3 million of her proceeds. This stake is subject to an agreement to sell to the consumer goods company at a 6.6 multiple of Childs Farm profit in two tranches in 2024 and 2025.
Childs Farm made £17.4 million of sales last year and reported a pre-tax loss of £900,000. It has focused on reinvesting in its growth and now claims 15 per cent of Britain’s baby and children’s toiletry market.The brand, which uses organic raspberry and tangerine flavours, has become popular with parents who have shifted to products that use natural ingredients. Its moisturiser, flavoured with cocoa and shea, has been popular in soothing eczema.
The acquisition by PZ Cussons comes at a time when Jonathan Myers, 52, chief executive, has been leading a turnaround of the consumer goods company by focusing on “must win” brands and priority categories and markets. It is its first acquisition in eight years as it has been focused on streamlining its business. PZ Cussons was founded in 1884 by Scottish and Greek entrepreneurs George Paterson and George Zochonis to trade commodities with west Africa. It made £603 million in sales last year and employs more than 3,000 people.
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“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,” Myers said. “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.”
Analysts at Shore Capital said the deal signalled “a welcome return to the acquisition trail, the journey from turnaround to transformation has commenced”.
Jensen 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.”
She previously told The Times that the company had come close to ruin in 2014 after an investor pulled out at the last minute, threatening the brand’s relationship with retailers. The business was financially supported by one of its manufacturers, Tom Allsworth, co-founder of Revolution Beauty, and secured £2.6 million from other investors.
