McPherson's Limited completes sale of 'Multix' brand

McPherson's Limited (ASX: $MCP) has finalized the sale of its 'Multix' brand and inventory to International Consolidated Business Group Pty Ltd for $19 million. This divestment follows a strategic review announced in November 2023, aligning with McPherson's focus on core health, wellness, and beauty brands.

Executive Commentary on Strategic Divestment

The strategic reset announced in November last year aims to ensure a focused approach on the strongest brands in the health, wellness, and beauty category. By divesting 'Multix', McPherson's is positioning itself as a more focused organization, better equipped to capitalize on its core brands, drive productivity, and foster growth. This move allows the company to continue its transformation with a strengthened balance sheet, reshaping the business for the future as a pure-play health, wellness, and beauty company.

Summary of Divestment and Future Outlook

McPherson's Limited (ASX: $MCP) has successfully completed the divestment of its 'Multix' brand, aligning with its strategic reset to focus on core health, wellness, and beauty brands. The sale, valued at $19 million, marks a significant step in the company's transformation plan, releasing capital to invest in driving productivity and growth while strengthening the balance sheet. The removal of 'Multix' from the portfolio will impact existing supply chain arrangements, prompting the business to review the most appropriate route to market for its brand portfolio. The company anticipates incurring a one-off, non-cash asset write-down of $10 to $11 million and pre-tax costs of approximately $1.5 million in FY24 due to the divestment. McPherson's is set to announce its full year results on 23 August 2024, as it continues to shape its future as a pure-play health, wellness, and beauty company.