Glanbia announces $350 million US acquisition
Glanbia plc has announced an agreement to acquire US weight management firm SlimFast and other brands for $350 million.
Glanbia plc has signed an acquisition agreement with the owners of KSF Holdings LLP and HNS Intermediate Corporation, which collectively own SlimFast and other brands.
SlimFast is a weight management and health and wellness brand, family distributed primarily in the food, drug, mass and club (FDMC) channel in the US and UK.
Also included in the transaction are a number of nutritional supplement brands such as “Healthy Delights” and “Nu-Therapy”.
The gross assets of SlimFast at its 2017 financial year end were $136 million. Glanbia plans to operate SlimFast within its Performance Nutrition segment.
Commenting on the acquisition, Siobhan Talbot, group managing director of Glanbia, said: “I am pleased to announce that we have agreed to acquire SlimFast, a leading consumer brand in the $8 billion weight management nutrition market, an adjacency to the Glanbia Performance Nutrition brand portfolio.
SlimFast is an established and enduring brand and, along with nutritional supplements brands ‘Healthy Delights’ and ‘Nu-Therapy’, complements our existing portfolio targeting lifestyle consumers.
“It plays to global consumer trends focused on convenient formats and snacking. The transaction is in line with our strategic ambition to extend the reach of our Glanbia Performance Nutrition portfolio to related consumer needs.”
It is anticipated that the transaction will close before the end of 2018 subject to the customary completion conditions, agreed closing accounts and regulatory approval.
Final consideration will be dependent on the value of actual working capital at completion; there is no other deferred component to the consideration.
The transaction will be fully financed by Glanbia’s available banking facilities and it is expected to be accretive to earnings per share from 2019 onwards.
For more than 40 years, SlimFast has pioneered a range of products in the weight management and health and wellness sector, according to Glanbia.
SlimFast has a portfolio which includes ready-to-drink and ready-to-mix powder products as well as a new ‘Advanced Nutrition’ range which includes high-protein, high-fibre, gluten-free meal replacement shakes and smoothies.