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.
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”.
Glanbia plc is a global nutrition company, grounded in nature and science and dedicated to providing better nutrition for every step of life’s journey. Glanbia plc has deep roots in the dairy industry and has become the world’s leading producer and marketer of quality performance nutrition products supporting active lifestyles. Its success as a global provider of innovative nutritional solutions is supported by significant investment in research and development. With total group turnover of €3.6 billion in 2017, 6,600 employees and a presence in 32 countries worldwide, Glanbia’s vision is to be one of the world’s top performing nutrition companies, trusted to enrich lives every day. For further information on Glanbia, visit www.glanbia.com.