Source: Sharecast
The company announced in April last year that it was planning to sell the St. Tropez brand as part of a broader plan to refocus its portfolio.
Since then, Cussons said it has 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," it said.
During the course of the process, the board explored a number of alternative business models which could create more value for shareholders. "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.
As part of the new direction, Cussons will establish a focused team to lead the St. Tropez brand across its international footprint. "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," it said.
Also part of the plan is the formation of a strategic partnership with Emerson, a US-based partner to brand owners which 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. Emerson is already the distributor of Cussons’ Childs Farm products 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 company said.
"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."
At 1010 BST, the shares were down 3.6% at 73.56p.