Five:Am yoghurt set to join Australian baby food firm Raffertys Garden in PZ Cussons food portfolio

Five:Am yoghurt set to join Australian baby food firm Rafferty's Garden in PZ Cussons' food portfolio

UK-based consumer goods group PZ Cussons has moved to add to its food business with a deal to buy Australian organic yoghurt firm Five:Am.

A year after PZ Cussons swooped to acquire Australian baby food business Rafferty's Garden, the home care-to-beauty products company has exchanged contracts to buy a business it described as a "leading organic yoghurt brand" in the country.

PZ Cussons has agreed to pay an initial GBP44.1m (US$74.2m) for Five:Am. A further GBP7.7m could be paid depending on Five:Am's performance.

Alex Kanellis, chief executive of PZ Cussons, said Five:Am was "an excellent fit" with the group's existing presence in the "fast-growing core food and nutrition category".

Kanellis added: "Since its launch in 2011, Five:Am has become a market leader in the Australian organic food category. A combination of industry-leading innovation, a compelling brand proposition and a high-quality product range has driven the business' growth to date and leaves it uniquely placed to take advantage of the market trends of increasing yoghurt consumption and demand for organic and nutritious products."

Food is a small part of PZ Cussons' business. Besides Rafferty's Garden and Five:Am, PZ Cussons' food portfolio includes Greek olive oil and spreads brand Minerva. The company also has a dairy business in Nigeria through a venture with Glanbia.

Click here for our analysis of PZ Cussons' recent moves to expand its food business.