6th Sep 2006 07:03
Glanbia PLC06 September 2006 GLANBIA MAKES MAJOR US NUTRITIONALS ACQUISITION DELIVERING A SIGNIFICANT STEP FORWARD IN THE GROUP'S GROWTH STRATEGY 6 September 2006 - Glanbia plc, the international dairy foods and nutritional ingredients Group, today announced the acquisition of a California based nutritional business, Seltzer Companies, Inc., (Seltzer). The total consideration is US$105 million (€81.8 million), of which US$80.0 million (€62.3 million) cash is payable on completion and US$25.0 million (€19.5 million) deferred payments, which are contingent on the achievement of specific performance targets. The business is being acquired on a debt free basis and will be funded through Glanbia's existing financing facilities. The transaction is subject to approval by the US Federal Trade Commission and completion is expected in October 2006. In 2005, Seltzer generated revenue of US$52.6 million (€41.0 million), profit before taxation of US$6.4 million (€5.0 million) and had gross assets of US$17.0 million (€13.2 million) at December 2005. Seltzer is a leading US nutritional solutions company with strong expertise in the development of customised formulations and the distribution of speciality ingredients for the nutritional supplement, food and pharmaceutical markets. It specialises in the development and supply of bulk fine nutrients (amino acids, minerals and vitamins) and nutritional premixes. Seltzer employs 94 people and services a customer base across the US from three facilities in San Diego County. The business will continue to be run by the existing management team, led by Wayne Seltzer. This is a significant acquisition for Glanbia: •Seltzer's growth prospects broaden the potential for the Group's US and international nutritional solutions business where Glanbia is a key supplier of nutritional premixes and functional customised formulations; •Seltzer creates the opportunity to extend Glanbia's major investment in innovation and clinical research in nutritional products with science-based health benefits; and •Seltzer is a strong fit with Glanbia's existing nutritional business delivering increased scale in key growth sectors. John Moloney, Group Managing Director of Glanbia, commented today: "Consumers world-wide are increasingly aware of the link between diet and health and as a result key sectors within the global nutritional market, such as functional foods and nutritional supplements, are growing very strongly. The acquisition of Seltzer Companies, Inc., combined with our existing Nutritionals business, extends Glanbia's platform to develop a global Nutritionals business and will be earnings enhancing in 2007. It also advances the international development of the Group into key global growth markets. We welcome Wayne Seltzer and his team to the Group." ENDS Exchange rate: €1 = US$1.284 ( 5 September 2006) For further information contact Glanbia plc +353 56 777 2200Geoff Meagher, Deputy Group Managing Director/Group Finance DirectorSiobhan Talbot, Deputy Group Finance DirectorGeraldine Kearney, Corporate Communications + 353 87 231 9430Hogarth Partnership UK +44 207 357 9477John Olsen Note for Editors Glanbia Nutritionals is a leading provider of science-based nutritionalsolutions for products with enhanced health benefits. This business produces awide range of specialty whey proteins, dairy derived nutritional ingredients,minerals and vitamins. Glanbia Nutritionals supplies ingredients for use inready-to-drink/ powdered beverages, nutritional bars, dairy products, snacks andconfectionary products across a range of sectors, including the sportsnutrition, weight management and general wellness markets. Glanbia Nutritionalshas operations in the US, Ireland, Germany and the UK as well as sales officesin South America and China. The business focuses on two key areas: Speciality Ingredients Vitamins & Minerals & Dairy based nutrition Experts in the application of innovative and Specialist in research,specialty ingredient solutions, including a wide development and productionrange of specialty whey proteins and other dairy of customised nutrientbased nutritional ingredients. systems For use in ready-to-drink and powdered beverages, Supplying a full range ofnutritional bars, dairy products, snacks, bespoke formulations : confectionary applications etc. (vitamins, minerals, trace elements, amino acids etc.) Global Nutritional Market Consumer lifestyle trends have contributed to a demand for convenience and thiscombined with increased public awareness of diet and health is driving theGlobal nutritional market which is estimated to be worth €60 billion. Withinthis the nutritional premix market is growing at the rate of 10% per annum This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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