Glanbia to buy SlimFast for $350m
Global nutrition company Glanbia has agreed to buy weight management and health and wellness brand SlimFast from owners KSF Holdings and HNS Intermediate Corporation for $350m.
Distributed primarily in the food, drug, mass and club channel in the US and UK, SlimFast delivered $212m net sales in 2017, adjusted earnings before interest, taxes, depreciation and amortisation of $24m and, after non-recurring supply-chain transition costs, a pre-tax net loss of $12m.
At its 2017 financial year end, SlimFast's gross assets stood at $136m.
Glanbia, which plans to operate SlimFast within its Performance Nutrition segment, said the deal should close before the end of the year and the final consideration will be dependent on the value of actual working capital at completion. The transaction will be fully financed by Glanbia's available banking facilities and is expected to be accretive to earnings per share from 2019 onwards.
Glanbia's group managing director, Siobhan Talbot, said: "I am pleased to announce that we have agreed to acquire SlimFast, a leading consumer brand in the $8bn 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."
At 1608 BST, Glanbia shares were down 0.8% to €14.11.