The maker of Imperial Leather and Carex soap has moved into the world of nourishing mud wraps and exfoliating salt scrubs after acquiring the world-famous Sanctuary spa and brand for £75 million.

PZ Cussons, which can trace its roots to a pair of groundnut traders in Sierra Leone in 1879, wants to cash in on the women-only health spa in Covent Garden, Central London, and turn it into a global business. Graham Calder, the deputy chairman of PZ Cussons, said that the company wanted to open more day spas in Britain and overseas, as well as extending the range of Sanctuary-branded health and beauty products.

Mr Calder said: “The spa may need a bit of a revamp, but it still has a tremendous reputation. I can't get in the bathroom at home - it's full of their stuff.”

The Sanctuary achieved a degree of global fame in 1978 when Joan Collins appeared in a scene on the spa's swing in The Stud, a film based on the novel by her sister Jackie Collins, reviving the actress's career. The five-floor spa had opened a year earlier after a decade as a converted dance studio. Previously it had been a banana warehouse.

Although popular with celebrities such as Kate Moss and Sadie Frost in the 1990s, the Sanctuary has lost its star quality in recent years after the opening of a string of exclusive health spas in the capital, such as the Cowshed and Groom. It still caters for nearly 65,000 guests a year and, including product sales, generated £26 million of revenue in the 12 months to September. Retail sales in the last four months of 2007 were up 11 per cent.

PZ Cussons bought the business from HgCapital, the private equity group, which acquired the spa in the mid-1990s and made a secondary investment of £23.5 million three years ago. The new deal is expected to hand Alice Avis, the chief executive of Sanctuary Spa, a £5 million windfall. She will remain with the business and oversee its expansion. She has begun a push into America and the Far East.

The deal marks the latest move by PZCussons to rebalance its business by acquiring more brands in Britain. After Original Source in 2002, the company bought the Charles Worthington haircare brand three years ago. The acquisitions have helped PZ Cussons to take a leading 22 per cent share of Britain's estimated £800 million-a-year market in soap and shower gel.

Mr Calder said: “Our main business is in Africa and Asia, but we have a very strong position in the UK. We have just spent more time investing in new ideas and bringing in more products that people want to buy.

“We sell Imperial Leather shower gel for £1.50. The equivalent in the Sanctuary brand would sell for £4.50, so, clearly, moving our brands upmarket is very important. We feel our current brands can't stretch as far as Sanctuary can.” The acquisition came as PZ Cussons reported an 8 per cent rise in pre-tax profits to £32.5 million for the half-year to November 30, 2007. Revenue rose 7 per cent to £299.5 million. The company said that plans remained on track to open a plant in Manchester by the spring. The shares rose 2p to 195p, valuing the business at nearly £840 million.

Gillian Hilditch, an analyst for Cazenove, said: “The acquisition of the Sanctuary brand and spa is a very positive strategic move by PZ Cussons and helps to balance the portfolio geographically.

“It is also an encouraging sign of the company's new attitude to growth that it is prepared to take on debt, albeit a modest amount, for the right acquisition.”

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