In a notable acquisition from Europe, Glanbia, Ireland’s dairy and sports nutrition group has announced the takeover of US protein bar maker thinkThin for a reported US$217 million (AU$305 million).

thinkThin was founded by Lizanne Falsetto in 1999 and is based in Southern California and describes itself as a “passionate supporter of health through nutrition.”

Glanbia expressed the hope that the acquisition would give it “a great platform” to enter the “better for you” snack segment. The deal is expected to be through by early January 2016. Glanbia claimed the transaction would be marginally “earnings accretive” in 2016, reports Just Food.

Glanbia is focused on the ingredients and nutrition market and owns a number of supplement brands including Optimum Nutrition and BSN. thinkThin is known as a specialist player in high-protein, health-focused bars and snacks. It is expected to add more value to Glanbia's Performance Nutrition division.

Perfect fit

“The transaction is firmly aligned with our overall growth ambitions and positions well in the fast growing nutrition bar category as well as being value enhancing for our shareholders,” commented Glanbia's group Managing Director, Siobhán Talbot, reports RTE news.

thinkThin clocked annual sales of US$84 million (AU$118 million) in the 12 months that ended on Sep. 30. It was growing at a compounded average growth rate of 31 percent for the past three years, Glanbia said.

Talbot added that thinkThin is “a premium lifestyle nutrition product with very strong brand equity.” She said thinkThin will serve as an excellent strategic addition to Glanbia's portfolio of market leading performance nutrition brands.

Michele Kessler, Chief Executive Officer of thinkThin said, as one of the world’s leading nutrition companies, “Glanbia’s strong commitment to innovation make it an ideal partner for thinkThin.”

Mass appeal

For Glanbia, acquisition of thinkThin would add “more mass appeal” as it expands in the protein bar range, commented Goodbody Stockbrokers as reported by The Irish Times.

For thinkThin’s products, the main channel of distribution has been grocery and health food stores. Noting the gain of Glanbia, a spokesman for KBC/Rabo said the acquisition of thinkThin “fills in a white spot.”

“The bar segment is worth US$2.8 billion (AU$3.9 billion) in retail sales value, and Glanbia has a limited presence in this segment. It does supply ingredients, but did not have a sizable branded offering in bars,” the spokesman said referring to the Irish company's advantage.

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