Glanbia Acquires Leading US Performance Nutrition Business for US$144 million
The Board of Glanbia believes that the acquisition of BSN significantly enhances the Group's Performance Nutrition portfolio and delivers further growth opportunities in this area.
1/19/2011 --- Glanbia plc has acquired Bio-Engineered Supplements and Nutrition (BSN), for a total consideration of US$144 million (€108 million). The business is being acquired on a debt free basis and is expected to be earnings enhancing in 2011. The acquisition is funded through Glanbia's existing banking facilities.
The Board of Glanbia believes that the acquisition of BSN significantly enhances the Group's Performance Nutrition portfolio and delivers further growth opportunities in this area.
In particular, the acquisition:
* Builds on the Group's scale position in the attractive, high growth, higher margin, sports nutrition sector;
* Broadens Performance Nutrition's product portfolio into new categories and channels;
* Represents a further step change in international growth opportunities for Performance Nutrition;
* Offers innovation and new product development opportunities through combined R&D; and
* Continues to develop Glanbia in line with the Group's international growth strategy.
Announcing the acquisition, John Moloney, Glanbia Group Managing Director, said: "BSN is an excellent strategic fit with our Performance Nutrition business and adds strong brand and market positions that complement and extend our portfolio. Since the acquisition of Optimum Nutrition we have established a market leading, scale position in the attractive, high growth, global sports nutrition sector. BSN is a very exciting acquisition for us and we are pleased to welcome the BSN team to Glanbia. Global Nutritionals is now a €600 million revenue business, a position we have built organically and by acquisition in just over five years."
In a separate announcement Glanbia issued a 2010 full year trading update which confirmed that 2010 adjusted earnings per share growth is expected to be approximately 20%. Inclusive of the benefits of the BSN acquisition, Glanbia is forecasting adjusted earnings per share growth for 2011 (on a constant currency basis) of 11% to 13%.
In the first half of 2010, Glanbia delivered excellent results, mainly due to a return to profitability in Irish Dairy Ingredients and a good performance by Global Nutritionals. In the second half of the year the positive trend continued, underpinned by stronger global dairy markets and solid demand across key nutritional sectors. Since the announcement of the Interim Management Statement in November 2010, the Group has performed broadly in line with expectations and Glanbia expects to deliver circa 20% growth in adjusted earnings per share for the full year. The full year impact of currency translation, relative to 2009, is largely neutral as expected.
