Joanna Jensen, 51, founded Childs Farm 12 years ago in her search for a product that would help her daughter’s knotty hair without irritating her sensitive, eczema-prone skin – it is now being sold to Imperial Leather for £37million
A former investment banker who started making bath products a decade ago to soothe her daughter’s eczema-prone skin has sold her idea to the maker of Imperial Leather for £37million.
Joanna Jensen, 51, started Childs Farm in 2010 on her farm in Basingstoke, Hampshire, where she worked as a horse breeder.
After learning about natural remedies for making shampoos for her horses, she developed a product for her children’s knotty hair that doesn’t irritate their incredibly sensitive skin.
In an interview, she once said, “That’s what led me to develop a range myself so I could give them skincare without the ‘ouch’.”
After noticing the difference her essential oil recipes made with her daughter’s eczema and the lack of natural products on the children’s market, Jensen turned her creations into a business idea.
Ms Jenson has now made at least £15million after selling her stake in the company to Imperial Leather soap maker.
Over the past twelve years their brand of children’s shampoos, moisturizers and bubble baths has grown rapidly to overtake the Johnson & Johnson range and is stocked in Boots and all major supermarkets.
The brand, which uses organic raspberry, apple and tangerine flavors, has become popular with parents who have switched to newer brands with natural ingredients.
Its cocoa and shea-flavored moisturizer has been praised on social media for calming irritated skin, particularly eczema.
The company has also paid for clinical trials to test its products on babies with medically diagnosed eczema, which means its bottles are labeled “safe for newborns.”
PZ Cussons, the consumer goods company that also makes Original Source and Carex Handgel, has bought a 92 per cent stake in the brand for £36.8million, leaving Jensen with a windfall of £15.1million and more has to reckon with in the future due to the structure of the deal.
Jensen described the deal on LinkedIn as “finding new parents for our little girl… we’re not stopping, we’re just stocking up for the next big boost.”
Jensen will also receive an 8.1% stake in a new subsidiary of PZ Cussons in return for investing £3.3m of their proceeds.
That interest is subject to an agreement to sell it to Cussons in 2024 and 2025 at a multiple of 6.6 times Childs Farm’s earnings, meaning an even larger potential payout.
Childs Farm made £17.4m from sales last year and reported a £900,000 pre-tax loss as it has focused on reinvesting in its growth.
The company almost collapsed in 2014 when an investor pulled out at the last minute and threatened the brand’s retail presence.
Today it has more than 50 employees and products are stocked in Boots, Waitrose, Tesco and Asda.
In 2019, the company launched a sensitive personal care line for adults in Boots called Farmologie by Childs Farm.
https://www.mirror.co.uk/money/mum-who-made-soap-help-26734291 Mom who created ingenious bar of soap to help daughter with eczema sells idea for £37million