6 September 2006 - Glanbia plc, the international dairy foods and nutritional ingredients Group, today announced the acquisition of a California based nutritional business, Seltzer Companies, Inc., (Seltzer). The total consideration is US$105 million (Euro81.8 million), of which US$80.0 million (Euro62.3 million) cash is payable on completion and US$25.0 million (Euro19.5 million) deferred payments, which are contingent on the achievement of specific performance targets. The business is being acquired on a debt free basis and will be funded through Glanbia's existing financing facilities. The transaction is subject to approval by the US Federal Trade Commission and completion is expected in October 2006.
In 2005, Seltzer generated revenue of US$52.6 million (Euro41.0 million), profit before taxation of US$6.4 million (Euro5.0 million) and had gross assets of US$17.0 million (Euro13.2 million) at December 2005.
Seltzer is a leading US nutritional solutions company with strong expertise in the development of customised formulations and the distribution of speciality ingredients for the nutritional supplement, food and pharmaceutical markets. It specialises in the development and supply of bulk fine nutrients (amino acids, minerals and vitamins) and nutritional premixes. Seltzer employs 94 people and services a customer base across the US from three facilities in San Diego County. The business will continue to be run by the existing management team, led by Wayne Seltzer.
This is a significant acquisition for Glanbia:
- Seltzer's growth prospects broaden the potential for the Group's US and international nutritional solutions business where Glanbia is a key supplier of nutritional premixes and functional customised formulations;
- Seltzer creates the opportunity to extend Glanbia's major investment in innovation and clinical research in nutritional products with science-based health benefits; and
- Seltzer is a strong fit with Glanbia's existing nutritional business delivering increased scale in key growth sectors.
John Moloney, Group Managing Director of Glanbia, commented today:
'Consumers world-wide are increasingly aware of the link between diet and health and as a result key sectors within the global nutritional market, such as functional foods and nutritional supplements, are growing very strongly. The acquisition of Seltzer Companies, Inc., combined with our existing Nutritionals business, extends Glanbia's platform to develop a global Nutritionals business and will be earnings enhancing in 2007. It also advances the international development of the Group into key global growth markets. We welcome Wayne Seltzer and his team to the Group.'