Originally announced in mid-November 2018, Science in Sport (SiS) has announced that it has successfully completed the acquisition of PhD Nutrition, the ‘premium, innovation-led protein brand’.
Commenting on the acquisition, Stephen Moon, CEO of SiS, said “This is a transformational deal for our business. It immediately doubles our size and accelerates our ambition to become a global leader in premium performance nutrition.
“SIS and PhD are two businesses that have complementary brands, products, operations and sales channels which together create a well-balanced, cash generative company with enhanced potential. We look forward to working with our new colleagues and delivering value to our shareholders who have supported us in delivering this significant deal.”
In a stockmarket release on 6 December, SiS stated… ‘Following admission of the 5,833,334 consideration shares to trading earlier today, the company’s total issued share capital consists of 121,967,803 ordinary shares, of which none are held in treasury. The figure of 121,967,803 may therefore be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the group, under the Financial Conduct Authority’s Disclosure Guidance and Transparency Rules.’
SiS notes that PhD Nutrition is ‘one of the UK’s leading protein brands with a reputation for high quality and innovative products aimed at sports enthusiasts and gym lifestyle consumers.’ PhD retails via ‘a core sales channel with increasing revenue growth through its Amazon sales channel.’
PhD has an established and growing international presence in over 45 countries across Europe, the Middle East, China and Australia. For the year ended 31 August 2018, PhD generated revenue of £20.8 million and adjusted EBITDA of £2.8 million.
SiS plans to accelerate PhD’s growth strategy and the acquisition is expected to have an immediate positive impact on revenue with PhD expected to deliver mid-teen percentage revenue growth in the first full year following completion. As part of that growth, SiS expects to boost PhD’s online sales by utilising SiS’ existing platform and capabilities. The Directors believe that PhD could achieve an additional £4.0 million to £7.5 million of revenue from PhD.com over the first full three financial years following completion.
SiS is currently the official sports nutrition supplier to professional cycling team Team SKY, along with national associations British Cycling, Cycling Australia, USA Cycling and USA Triathlon. SiS is also sports nutrition partner to Manchester United Football Club. In addition, Olympians Sir Chris Hoy MBE, Adam Peaty MBE and Mark Cavendish MBE are brand ambassadors.
SiS was founded in 1992 and is headquartered in Hatton Garden, London. Its manufacturing facility is in Nelson, Lancashire.