FDBusiness.com

GlaxoSmithKline is acquiring Maxinutrition, a UK company that manufactures protein-enhanced functional nutrition products, from Darwin Private Equity for £162m, including the repayment of outstanding debt. Maxinutrition is Europe’s leading sports nutrition company by market share.

Maxinutrition achieved sales of £36m for the year ended April 2010 and has delivered sales growth of approximately 21% CAGR over the last three years. GSK is acquiring Maxinutrition’s brands, including Maximuscle, the leading brand in the UK and European sports nutrition market.

The deal will extend GSK’s reach into wider categories, complementing its existing Nutritional Healthcare business. GSK will also bring its marketing excellence and R&D innovation capability to extend the growth of Maxinutrition in the UK, European and international markets where the products are available.

“This deal will give GSK a strong presence in the fast developing protein-based sports nutrition market, appealing across a broad spectrum of consumers from elite athletes to sports participants and those seeking additional nutritional supplementation,” explains John Clarke, president of consumer healthcare at GSK. “The acquisition is a demonstration of GSK’s strategy to expand our Consumer Healthcare business through appropriate bolt-on acquisitions which meet our strict financial criteria.”

Although the Nutritional Healthcare division is only a small part of GSK’s global operation, which achieved pre-tax profits of £7.9b on sales of £28.4b last year, its is still a sizeable and lucrative business, armed with powerful brands such as Lucozade, Ribena and Horlicks. Nutritional Healthcare turnover grew by 3% to £851m in 2009.