In a statement, the Kilkenny-based firm revealed its intentions to walk away from Glanbia Ireland, a joint venture between the two parties to focus on Glanbia Performance Nutrition (GPN) and Glanbia Nutritionals (GN).
“Glanbia Ireland has a successful heritage, and for many years we have valued the partnership with Glanbia Co-op in creating a strong business under our joint stewardship,” says Glanbia plc’s Chairman Donard Gaynor. “This is the right time for the Proposed Transaction.”
The Co-op is the right owner to continue the strategic development of Glanbia Ireland for the benefit of the Co-op’s members, and the PLC can continue to maximise the opportunities for its own business in the post-Covid environment, with our focus on health, wellbeing and nutrition.”
Optimum Nutrition & BSN
Discussing the reasoning behind the move, Glanbia plc said the sell-off was consistent with the PLC’s strategy to focus on GPN & GN, owners of the popular sports nutrition brands Optimum Nutrition and BSN.
The deal would also allow Glanbia plc to pursue strategic joint ventures whilst allowing focus on its “global nutrition strategy as a brand owner and provider of nutrition solutions, serving high growth markets.”
The proceeds from the proposed transaction will be primarily invested in growth opportunities with up to 50% of the proceeds being returned to shareholders via a share buyback.
Glanbia plc’s emphasis on nutrition has resulted in a spate of brand acquisitions that include Slimfast (2018), Plant Nutrition (2017), thinkThin (2015) and Isopure (2014) which all tap into the need to follow a healthy lifestyle.