January 19/Boca Raton, Fla./London Stock Exchange Aggregated Regulatory News Service -- Glanbia plc, an international nutritional ingredients and cheese group, announced the acquisition of Bio-Engineered Supplements and Nutrition (BSN(R)), for a total consideration of $144 million (108 million euros).
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.
BSN is a developer, provider and distributor of nutritional products designed for health, training, physique development and performance. BSN is headquartered in Boca Raton in Florida and employs 140 people. The business was previously privately owned.
Among BSN's core product areas is protein powders, where Optimum Nutrition (acquired by Glanbia in 2008) is a market leader. In addition, BSN provides a choice of related performance nutrition products.
In 2009, BSN had net revenue of $135.4 million and earnings before interest and tax (EBIT) of $10.1 million. Adjusted EBIT amounted to $16.3 million. At the year-ended December 2009, BSN had gross assets of $30.5 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.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.
In a separate announcement today 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%.
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 euro revenue business, a position we have built organically and by acquisition in just over five years."
From the January 24, 2011, Prepared Foods E-dition