Glanbia dives into weight management category with €300 million SlimFast deal

By Nathan Gray contact

- Last updated on GMT

Glanbia dives into weight management category with €300 million SlimFast deal
Irish dairy and nutrition giant Glanbia will fork out more than €300 million to acquire weight management mega-brand SlimFast, as it looks to add more bulk to its offerings in the category.

The deal will see global nutrition group Glanbia Plc acquire globally recognised weight management brand ‘SlimFast’ and its related brands from current owners KSF Holdings LLP and HNS Intermediate Corporation for a total of $350 million USD (€303m).

SlimFast is a leading brand in the weight management category – a market estimated to be worth $8 billion. It is a well-established and growing brand with high levels of brand awareness in both the UK and the US – its largest market.

Glanbia’s group managing director Siobhán Talbot said the deal plays into consumer trends focused on convenient formats and snacking – adding that SlimFast operates in a category adjacent to those where the Glanbia Performance Nutrition brand portfolio currently sits.

SlimFast is an established and enduring brand and, along with nutritional supplements brands ‘Healthy Delights’ and ‘Nu-Therapy’, complements our existing portfolio targeting lifestyle consumer,” ​she noted.

Growing portfolio

In 2017, SlimFast delivered €183 million ($212m) net sales, with adjusted EBITDA (before non-recurring costs) of €20.7m ($24m) and.  The gross assets of SlimFast at its 2017 financial year end were €117.5m ($136m).

Glanbia confirmed that it plans to operate SlimFast within its Performance Nutrition segment – noting that the deal is expected to close before the end of 2018 and will be accretive to earnings per share from 2019 onwards.

“The transaction is in line with our strategic ambition to extend the reach of our Glanbia Performance Nutrition portfolio to related consumer needs,” ​said Talbot.

The acquisition will be fully financed by Glanbia’s available banking facilities, the company said.

Related topics: Business, Healthy foods, Prepared foods

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