PZ Cussons sells Polish Home Care brands to Henkel

Consumer products giant PZ Cussons is selling its Polish Home Care brands to Henkel for 46.6m pounds.

The Polish Home Care brands include laundry detergents, fabric conditioners and washing up liquids.

The brands generated revenue of £51.4m in the year ended May 31st 2012.

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Cussons has decided to sell the brands as it restructures the business to focus on its Personal Care unit.

Completion of the transaction is subject to merger control clearances in Poland and Ukraine, which is expected to take about six months.

Proceeds of the transaction will be used to reduce existing debt or to support business operations.

"I am pleased to be able to announce the exchange of contracts for the conditional sale of our Polish Home Care brands," Chief Executive, Alex Kanellis, said.

"On successful completion of the transaction, the divestment will enable us to focus on developing the Personal Care business in Poland and will further strengthen our balance sheet, improving our flexibility to take advantage of new investment opportunities as they arise."

Shares rose 0.43% to 397.90p at 08:32 Wednesday.

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