Optimum Nutrition purchased by Glanbia
Monday, August 25th, 2008Ireland’s Glanbia, the food production group, is bulking up – literally – with the acquisition of Optimum Nutrition, a US manufacturer of fitness supplements.
Glanbia, which is the largest producer of cheddar cheese in the US, will pay $315m (£170m) from its own resources to acquire the privately owned debt-free company, adding muscle rejuvenation products to its cheese and animal feed range.
“This represents forward integration at its simplest,” said John Moloney, Glanbia’s chief executive, explaining the logic for the deal.
“When you make cheese, you get whey as a by-product, and over the years we’ve been developing the extraction of interesting sugars and proteins from whey. Over a 10-year period we’ve been selling whey protein ingredients into the nutritional health and wellness sectors, and these guys [Optimum] have been customers.”
Illinois-based Optimum produces mostly whey-based protein products as well as vitamin supplements and diet bars, used by bodybuilders and fitness enthusiasts to assist in muscle growth and recovery.
Last year, Optimum had revenues of $185m and $32m in operating profit. Its products include Nitric Boost and Mega Fat Burner tablets.
“It’s convenient protein for a convenience age,” said Mr Moloney. “You could cook up six chicken breasts or just take one protein shake.”
Under the deal’s terms, Optimum will remain free to source whey from a variety of different producers.
The shares closed up 6 per cent on Monday at €4.60 in Dublin.
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