Glanbia acquisition for nutritional business

The acquisition will also improve Glanbia's access to the infant and clinical nutrition markets, key customers of privately owned Kortus​.

The deal is part of Glanbia's strategy to build up its recently established nutritionals division, currently contained within its core Food Ingredients business but expected to become a stand-alone unit.

Reorganization at the group, including some divestments over the last year, has prepared the ground for concentration on health ingredients as well as other added value businesses like consumer foods.

Glanbia​ will be aiming to take advantage of the strong growth in functional dairy, one of the most innovative functional foods sectors in Europe, making up around 30 per cent of all functional products.

The Nutritionals division, with headquarters in the US, makes dairy bioactives such as Prolibra, TruCal and Provon for applications in sports nutrition, weight loss and other functional foods. Recent investments to a US-based whey processing facility, planned to come on stream this month, will provide key raw materials -protein isolates - for the health ingredients business.

A new R&D centre in Kilkenny, Ireland, opened this year, is also expected to generate new growth opportunities for the business.

Glanbia has previously said that it is 'actively looking' at acquisitions, including some large-scale investments. The company, which is also Europe's biggest maker of cheese for pizzas, has already acquired a €1.3 million stake in health sciences start-up Westgate Biologicals, which is developing an antimicrobial product based on a dairy ingredient for oral hygiene.

It has a further €1.3 million joint venture agreement with Ireland-based Nash's Mineral waters, a premium bottled water brand.

Under the new deal, Glanbia is to pay Kortus €10.5 million in cash and a further deferred payment of €4 million, of which half will be payable subject to the achievement of a pre-determined performance target.