Glanbia plc agrees to acquire health and wellness brand SlimFast for US$350m

USA – Glanbia plc, 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, to acquire such entities for US$350 million.

According to Glanbia, it plans to operate SlimFast within its Performance Nutrition segment.

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 US$212 million net sales, adjusted EBITDA (before non-recurring costs) of US$24 million and, after non-recurring supply chain transition costs, a net loss before tax of US$12 million.

The gross assets of SlimFast at its 2017 financial year end were US$136 million.

“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,” said Siobhán Talbot, Group Managing Director of Glanbia.

“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.

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