11th Oct 2018 07:45
LONDON (Alliance News) - Irish food and nutrition firm Glanbia PLC said Thursday it has agreed to buy weight loss and nutritional products provider SlimFast from KSF Holdings LLP and HNS Intermediate Corp for USD350 million.
"I am pleased to announce that we have agreed to acquire SlimFast, a leading consumer brand in the USD8 billion weight management nutrition market, an adjacency to the Glanbia Performance Nutrition brand portfolio," Glanbia Managing Director Siobhan Talbot said.
In 2017, SlimFast generated adjusted earnings before interest, taxes, depreciation and amortisation of USD24 million on USD212 million in net sales. Including non-recurring supply chain transition costs, the firm generated a pretax loss of USD12 million.
"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."
Glanbia expects the deal to close before the end of 2018, subject to regulatory approval. The firm will fund the deal through its existing banking facilities and its expects the deal to be earnings enhancing from financial 2019 onwards.
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