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Glanbia PLC (GLB)

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Thursday 11 October, 2018

Glanbia PLC

Glanbia agrees to acquire SlimFast

RNS Number : 6638D
Glanbia PLC
11 October 2018
 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

Glanbia agrees to acquire SlimFast for $350 million

11 October 2018, Glanbia plc ("Glanbia"), the global nutrition group, has signed an agreement with the owners of KSF Holdings LLP and HNS Intermediate Corporation who collectively own SlimFast and other brands ("SlimFast"), to acquire such entities for $350 million (the "Transaction").

SlimFast is a leading weight management and health & wellness brand family distributed primarily in the food, drug, mass and club (FDMC) channel in the US and UK. It is a well-established and growing brand with high levels of brand awareness in the US, its largest market. In 2017 SlimFast delivered $212 million net sales, adjusted EBITDA (before non-recurring costs) of $24 million and, after non-recurring supply chain transition costs, a net loss before tax of $12 million.  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 Transaction, Siobhán 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.

About SlimFast

For more than 40 years, SlimFast has pioneered a range of products in the weight management and health & wellness sector. SlimFast has a strong position in formats including ready to drink (RTD) and ready to mix (RTM) powder products as well as a new 'Advanced Nutrition' range which includes high-protein, high fibre, gluten free meal replacement shakes and smoothies. Also included in the Transaction are a number of nutritional supplement brands such as "Healthy Delights" and "Nu-Therapy".

ENDS

There will be an analysts' conference call to accompany this announcement at 9.00 a.m. (BST) today.

 

 

 

 

To listen to the call, please dial-in using the following numbers:

Ireland

UK

Europe

USA

Pass code

01 246 5638

0330 336 9105

+44 (0)330 336 9105

323-794-2551

7805676

 

A webcast and presentation will accompany this call and can be accessed via the following link:

 

https://globalmeet.webcasts.com/starthere.jsp?ei=1215078&tp_key=cf93044b2a

 

 

A replay of the call will be available for 30 days from this afternoon. Please see the link below to the Investor Relations section of the Glanbia plc website for details:

 

https://www.glanbia.com/media/press-releases/2018

 

For further information contact:

Investors

Liam Hennigan, Group Director, Strategic Planning & Investor Relations:              +353 86 046 8375

Media

Martha Kavanagh, Head of Corporate Communications:                                           +353 87 646 2006


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
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