Glanbia shares rise as it buys two firms for €181m

Shares in Glanbia rose about 1.5% after the food firm said it was paying €181m to buy two more international firms.

The Kilkenny-based multinational late last month said it had advance plans to build its third cheese factory in the US in a joint venture with Michigan dairy farmers.

The investment was hailed by analysts as it only involved a relatively small amount of upfront cash to secure the transaction.

The latest acquisitions are Amazing Grass in the US and Body and Fit in the Netherlands, which will sit in its group of nutrition firms to give it access “to new consumers and channels”.

Glanbia said the two acquisitions generate €99m in annual net sales and it will fund the €181m total price tag from existing debt facilities.

Amazing Grass makes organic and non-genetically modified products which are considered ‘greens’ and ‘superfoods’.

Body and Fit sells directly to consumers and online to customers in Germany, as well as Benelux countries.

Dutch competition regulators have to approve the Body and Fit deal, which should nonetheless be completed by the summer.

“Both businesses have a track record of strong growth and we will continue to invest in their future development,” said group managing director Siobhan Talbot.

Merrion Capital analyst Dylan Simmonds said the broker approved of Glanbia’s growth plans.

More in this Section

US rate fears crash party

No surprise if airlines collapse as winter sets in

Little drama and little joy from today’s budget

Breaking Stories

Credit Unions top customer experience poll for fourth consecutive year

Greencore could be target of buyout

Providence eyes west coast drilling round next year

Superdry is latest UK retailer to feel the sales heat

Breaking Stories

Meet the A-listers of Zeminar 2018

Impressive double act kicks off Wexford Festival Opera

Boyhood dream becomes a reality for filmmaker George Morrison

More From The Irish Examiner