Blue Hefner
26-08-2008, 11:14 PM
Glanbia Buys Optimum Nutrition For $315 Million
August 25, 2008
Glanbia Plc, the producer of a third of Ireland's milk and cheese, said it paid $315 million for Optimum Nutrition Inc., a U.S.-based maker of sports nutritional supplements.
The purchase, Glanbia's biggest ever, will add to the company's earnings this year, the Kilkenny, Ireland-based company said today in an e-mailed statement. Optimum is privately owned and Glanbia is buying it on a debt-free basis.
Glanbia had spent about 300 million euros ($442.4 million) since 2004 before today to focus on building a food-ingredients and nutrition unit and cut its reliance on milk and cheese. The company bought California-based Seltzer Cos., whose ingredients are used in nutritional-food supplements, in 2006.
Today's acquisition "gives us a leading position in a fast-growing segments of the nutrition market,'' Managing Director John Moloney said in the statement. "Optimum also fits very well with the group's stated growth strategy and ambition to continue to internationalize our business.''
Glanbia rose 20 cents, or 4.6 percent, to 4.55 euros at 8:33 a.m. in Dublin trading. The shares have dropped 1.9 percent this year, giving the company a market value of 1.33 billion euros.
Aurora, Illinois-based Optimum had sales of $185 million and operating profit of $32 million in 2007, according to the statement. The purchase will be funded from Glanbia's "existing resources", the company said.
August 25, 2008
Glanbia Plc, the producer of a third of Ireland's milk and cheese, said it paid $315 million for Optimum Nutrition Inc., a U.S.-based maker of sports nutritional supplements.
The purchase, Glanbia's biggest ever, will add to the company's earnings this year, the Kilkenny, Ireland-based company said today in an e-mailed statement. Optimum is privately owned and Glanbia is buying it on a debt-free basis.
Glanbia had spent about 300 million euros ($442.4 million) since 2004 before today to focus on building a food-ingredients and nutrition unit and cut its reliance on milk and cheese. The company bought California-based Seltzer Cos., whose ingredients are used in nutritional-food supplements, in 2006.
Today's acquisition "gives us a leading position in a fast-growing segments of the nutrition market,'' Managing Director John Moloney said in the statement. "Optimum also fits very well with the group's stated growth strategy and ambition to continue to internationalize our business.''
Glanbia rose 20 cents, or 4.6 percent, to 4.55 euros at 8:33 a.m. in Dublin trading. The shares have dropped 1.9 percent this year, giving the company a market value of 1.33 billion euros.
Aurora, Illinois-based Optimum had sales of $185 million and operating profit of $32 million in 2007, according to the statement. The purchase will be funded from Glanbia's "existing resources", the company said.