Nutrition company Glanbia to acquire SlimFast for $350m

Nutrition company Glanbia is to buy weight management drinks manufacturer SlimFast for $350m.

Glanbia has signed an agreement with KSF Holdings and HNS Intermediate, which collectively own SlimFast and other brands.

SlimFast offers weight management products, which are distributed to the food, drug, mass and club (FDMC) channel in US and UK markets.

In the last financial year, the unit registered $212m through net sales, and gross assets stood at $136m.

Glanbia group managing director Siobhán 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.”

Glanbia intends to finance the acquisition using its available banking facilities.

The deal is subject to the customary completion conditions, agreed closing accounts and regulatory approval, and is expected to be complete by the end of 2018.

The final consideration will be dependent on the value of actual working capital at completion.

Upon completion of the deal, Glanbia plans to operate SlimFast within its performance nutrition segment.