Glanbia acquires US sports nutrition firm
Glanbia also issued a trading update, confirming adjusted earnings per share growth of around 20% for 2010.
Glanbia group managing director John Moloney said: “BSN will bring in €600m in sales, right to the centre of our business, and we expect it to grow by close to 10%. It will fit in well with Optimum Nutrition.
“BSN currently contracts out its manufacturing, whereas Optimum does its own manufacturing, which could be a possible synergy. We may also look at consolidating legal, back office, and other services.
“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.”
Including the BSN acquisition, Glanbia is forecasting adjusted earnings per share growth for 2011 of 11% to 13%.
In 2009, BSN had net revenue of €101.3m and earnings before interest and tax (EBIT) of €7.6m. Glanbia has acquired BSN on a debt-free basis. Acquired using Glanbia’s existing banking facilities, BSN has revenues of €600m annually. The global sports nutrition market is worth $4.5bn, and is growing at 6% a year.
BSN produces nutritional products for health, training, physique development and performance. Based in Boca Raton, Florida, it employs 140 people in its operations. BSN also produces protein powders, as does Optimum Nutrition, which Glanbia acquired in 2008.
BSN has a range of pre-work out powders and shots, protein powders, snacks and beverages and performance supplements. It is the official nutrition provider to the highly charged fighting sport Ultimate Fight Club.
“That sector has a significant fan base,” noted John Moloney.
Founded in 2001, BSN ships its products to more than 40,000 retail outlets in the USA, and to 90 countries worldwide. Glanbia believes this acquisition will bolster the group’s international growth strategy.
Meanwhile, Glanbia’s full-year trading update anticipates solid results for the group’s Irish Dairy Ingredients (IDI) and Global Nutritionals (GN). The year end results for 2010 will be published on March 2. IDI returned to profitability last year after a challenging 2009.
Global demand for dairy products increased last year, but the economic difficulties in Ireland pushed down domestic sales of consumer products.
Glanbia’s Agribusines sector achieved a broadly similar performance to 2009.
Full year operating profit and margin for Dairy Ireland are forecast to be well ahead of 2009. Glanbia’s Joint Ventures & Associates are expected to have a reasonable year with results forecast to be similar to 2009.
The Group also reduced its pension liabilities in 2009. Further revisions will result in an exceptional credit of €10m in 2010. Glanbia is forecasting 2010 year-end net debt of approximately €420m.
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