Glanbia plant in Ireland

Irish nutrition group Glanbia (GLB) has agreed to acquire a US protein bar producer for $217m (£142.8m).

ThinkThin sells its protein-enriched bars in food, natural and mass retail channels in the US and had net sales for the year to the end of September of $84m (£55.3m). The business has a compound average growth rate (CAGR) for the past three years of 31%.

Glanbia MD Siobhán Talbot said: “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.”

Glanbia added that ThinkThin would increase its performance nutrition division’s presence in the bar category and give it exposure to a category currently valued at $2.8bn in US retail.

The Irish group’s focus on sports nutrition has paid off, with sales for the year to 3 January 2015 up 6.9% up to €3.52bn as a result.

The deal, to be funded by debt, is expected to complete by the end of the 2015 financial year, subject to regulatory approval.

Share in Glanbia are down 0.6% so far today to €17.01.