A leading industry analyst has said that Glanbia's acquisition of weight management brand SlimFast will 'significantly expand' the group's exposure to the fast-growing ready-to-drink segment, as well as lifestyle consumers.
Jason Molins of Goodbody Stockbrokers was commenting following the announcement this morning that the dairy giant had signed an agreement to acquire SlimFast for $350 million.
Molins said that the transaction should be "modestly accretive to earnings (1-2%) in its first full year of ownership", adding that while the transaction adds to the business' pro forma net debt/EBITDA, it still provides Glanbia with around "€300 million of available headroom for further M&A" activity.
