Glanbia has announced a $350m (€303m) deal to acquire the Slimfast brand in the US.

Over 40 years old, Slimfast is one of the leading weight loss brands in the $8bn (€7bn) US health and wellness market and generated sales of $212m (€184m) in 2017.

Slimfast had earnings (EBITDA) of $24m (€21m) last year, giving the business an earnings margin of 11.3%. Glanbia said the business made a pre-tax loss of $12m (€10.5m) for the 2017 financial year.

Based on its EBITDA, Glanbia has paid an earnings multiple of 14.6 times for the Slimfast brand, which is in line with recent deals for such businesses.

Commenting on the deal, Glanbia managing director Siobhan Talbot said the acquisition is in line with Glanbia’s strategy to extend its portfolio of Performance Nutrition brands.

“I am pleased to announce that we have agreed to acquire SlimFast, a leading consumer brand in the $8bn weight management nutrition market, an adjacency to the Glanbia Performance Nutrition brand portfolio,” said Talbot.

Established brand

“SlimFast is an established and enduring brand and, along with nutritional supplements brands Healthy Delights and “Nu-Therapy, complements our existing portfolio targeting lifestyle consumers. It plays to global consumer trends focused on convenient formats and snacking,” she added.