Ireland-based, global performance nutrition and ingredients company, Glanbia, has agreed to acquire thinkThin for a cash consideration of US$217 million.
(This latest deal follows the late 2014 acquisition of The Isopure Company, from private equity firm Encore Consumer Capital, for US$153 million.)
thinkThin has a range of protein enriched bars ‘targeted at lifestyle consumers looking for wholesome, convenient and delicious snacks.’ thinkThin primarily distributes its products in food, natural and mass retail channels in the US. Net sales for the twelve months to the end of September 2015 were US$84 million, with a compound average growth rate for the previous three years of 31%.
Siobhán Talbot, Glanbia Group Managing Director said “I am very pleased to announce that we have reached agreement to acquire thinkThin. As a premium lifestyle nutrition product with very strong brand equity, thinkThin represents an excellent strategic addition to our portfolio of market leading performance nutrition brands.
“The transaction is firmly aligned with our overall growth ambitions and positions us well in the fast growing nutrition bar category as well as being value enhancing for our shareholders.”
thinkThin will increase the Glanbia Performance Nutrition (GPN) division’s presence in the bar category and provides exposure to the rapidly expanding nutrition bar segment, which is currently estimated at US$2.8 billion in US retail.
In addition, Glanbia notes that thinkThin provides a great platform for GPN to enter the ‘better for you’ snack products category as well as augment the GPN brand portfolio in its existing channels.
It is anticipated that the transaction will complete prior to the end of the 2015 financial year subject to the customary completion conditions and regulatory approval.
Glanbia added that the transaction will be ‘marginally earnings accretive’ (adding to earnings per share) in 2016 and will be funded by debt from existing facilities.
thinkThin is based in Los Angeles, California, US and was founded in 1999 by Lizanne Falsetto.The thinkThin range has expanded to include a portfolio of high protein and protein & fibre bars as well as recent launches which include protein bites and protein & fibre hot oatmeal. thinkThin products are distributed in a range of well-known US food, drug and mass retailers. TSG Consumer Partners, a leading investor in the branded consumer sector, acquired a majority stake in thinkThin in December 2011.