Glanbia has stepped up its expansion into the sports nutrition market by acquiring Nutramino, a Danish supplier of such products as energy drinks and protein shakes, for up to €20 million.
The Kilkenny-headquartered food group completed the deal this week. Adam Brostrom, Nutramino’s head of marketing, confirmed the buyout by Glanbia, which was unavailable for comment.
The transaction gives Glanbia, which has shifted away from its core dairy business in recent years, a significant presence in Scandinavian markets.
Nutramino's annual sales growth in recent years is estimated to be about 40 per cent.
Fitness market
With a product range comprising energy bars, shakes and whey protein body-building supplements, it supplies about 90 per cent of the Danish fitness market through gyms and other outlets.
Its customers also include retailers such as 7-eleven stores and shops attached to Statoil petrol stations.
The company, which was founded in 2002, also has operations in Norway, Sweden, Iceland, Finland and France.
It was founded by Danish entrepreneurs Thomas Kjaergaard and Per Jensen who will continue to run the business for Glanbia.
A source said the business was attractive for Glanbia because its products have mass-market consumer appeal.
It also opens up new distribution channels for the Irish company in a new region, giving it a beach-head into the affluent Scandinavian markets.
Nutramino is also targeting growth in Russia, Germany and Britain, where Glanbia already has a strong presence.
Glanbia, which owns such dairy brands as Avonmore and Premier Dairies, entered the sports supplements and nutrition market in 2008 with the acquisition of US company Optimum Nutrition for more than €200 million .
It has since acquired other nutritional companies, such as BSN in 2011 of BSN, another US business. In 2012, it spent about €50 million on Aseptic Solutions, which makes high-grade packaging for consumer products within the sports nutritionals market.
Glanbia's biggest brands in the segment include Gold Standard Whey and ABB. It has high-profile endorsement deals with athletes such as Rob Kearney, the Leinster and Ireland rugby player.
Global market
The global market for sports nutrition goods is estimated at more than $7 billion (€5 billion). About 70 per cent of Glanbia's €700 million sales in the segment come from the US, with Europe accounting for about 20 per cent.
Glanbia is due to report its full-year sales for last year in March. It will be the first annual results outing for Siobhán Talbot, who took over as chief executive in November.
