Glanbia buys US-based sports nutrition firm

Glanbia has bought US-based nutritional supplements firm Optimum Nutrition in a deal worth €213 million.

The privately owned US firm, which employs 387 people at three facilities, makes nutritional supplements for the sports sector, including brands such as Optimum Nutrition and ABB. Glanbia said the firm was being acquired on a debt free basis and would be funded from existing resources within Glanbia.

The sports company generated €125 million revenue and €22 million operating profit in 2007, and by the year end had gross assets €35 million.

"This is an exciting acquisition for Glanbia as it gives us a leading position of scale in a fast growing segment of the nutrition market,” said John Moloney, Glanbia Group managing director. “It is a close strategic fit with our core areas of expertise in whey and sports nutrition and brings us up the value chain into consumer markets.”

The company's share rose the most since January in Dublin trading, advancing as much as 32 cents to €4.67 as of 10.25am.

Additional reporting: Bloomberg