Glanbia has agreed terms to buy a US nutitionals firm for €118m, sharply increasing its footprint in the sports supplement sector.
The company said yesterday it would buy Isopure for $153m (€118m). According to Glanbia, Isopure is a provider of premium branded sports nutrition drinks and supplements. The business is similar in nature to BSN and Optimum Nutrition, which Glanbia bought in the last few years.
The deal, which is subject to regulatory approval, will close before the end of this year.
Managing director Siobhan Talbot said she was happy with the deal.
"We are delighted to announce the acquisition of Isopure. As a premium brand, the business is an excellent addition to our portfolio of market-leading performance nutrition brands and provides an opportunity to leverage our infrastructure and capabilities to drive future growth," she said.
"The transaction, which is firmly aligned with the group's strategy, supports our growth ambitions and will be value- enhancing for our shareholders," she said.
At first glance, the deal may seem to be on the expensive side for Glanbia. Three years ago it paid some $9m less for BSN, even though it had revenues of $135m versus Isopure's $74.6m.
Analysts were broadly positive on the deal, with Investec's Ian Hunter estimating it would add about 1.5pc to the group's bottom line. Shares were unchanged at €11.21.