Food group Glanbia has announced it is to acquire the US sports nutrition brand Isopure for US153 million.
The Irish performance nutrition and ingredients group said the acquisition is expected to be earnings accretive from 2015 and will be funded from its existing debt facilities.
Isopure is a US-based provider of premium branded sports nutrition products. The company focuses on powders and ready-to-drink formats, primarily through the specialty, internet and direct distribution channels.
"As a premium brand, the business is an excellent addition to our portfolio of market leading performance nutrition brands and provides an opportunity to leverage our infrastructure and capabilities to drive future growth. The transaction, which is firmly aligned with the group's strategy, supports our growth ambitions and will be value enhancing for our shareholders," said Glanbia's managing director Siobhan Talbot.
Isopure generated net revenues of $74.6 million for the twelve month period to the end of July. This represents a compound annual growth rate of 20 per cent from December 2011 to the end July 2014.
Glanbia said it expects the transaction to complete in the fourth quarter.
