Applied Nutrition has boosted its growth potential in the US thanks to the acquisition of sports nutrition manufacturer Nutrablend for $16m (£12m).
It gives the London-listed group the same vertically integrated model in the US as it currently has in the UK, with a fully fitted-out manufacturing and warehousing facility in New York state and its own R&D and design teams.
The deal significantly enhances Applied Nutrition’s operation footprint in North America and provides a production capacity of up to $300m of revenue per year in the US.
It will also free up manufacturing capacity in the UK as all production carried out at its Merseyside factory for US sales will be moved to the Buffalo site.
Alongside the news of the acquisition, Applied Nutrition this morning upgraded sales forecasts for the year to 31 July 2026 from £140m to £148m, which excluded the effect from the US deal.
The Buffalo factory is expected to be earnings enhancing in the new financial year and contribute an additional $30m in revenues.
Applied Nutrition also entered into a new licensing agreement with Mondelez for the development and production of branded sports nutrition products for the US and Canadian markets, with a range to be initially stocked in 2,200 Walmart and 1,300 GNC stores from August.
“The acquisition of a US manufacturing site significantly strengthens our ability to support ongoing growth in the region and provides us with the ability to expand our North American offering, harnessing Nutrablend’s experienced management team,” Applied Nutrition CEO Thomas Ryder said.
“Importantly, it allows us to launch new products at the same pace as we do in the UK, improving our responsiveness to consumer and market demand and reinforcing a clear competitive advantage for Applied.
“The partnership with Mondelēz International on the Sour Patch Kids & Swedish Fish brands brings two more globally recognised names into our portfolio. This agreement represents a significant endorsement of the group’s capabilities, underlines the strength of our execution and shows our ability to deliver new, vibrant products to market through our NPD engine.
“Demand across our markets shows no sign of abating and we are well positioned to deliver on what consumers need for their health and wellness journey. As an agile but disciplined business, we’re confident that our delivery and expansion will continue to underpin the long-term outlook for our business.”
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