GlaxoSmithKline (GSK) to acquire Maxinutrition from Darwin Private Equity

GlaxoSmithKline (GSK) and Maxinutrition Group Holdings Limited Tuesday announced they entered into an agreement for GSK to acquire Maxinutrition.  Maxinutrition is a UK company that manufactures protein-enhanced functional nutrition products. GSK will acquire the firm from Darwin Private Equity.

Subject to approval from the Office of Fair Trading, GSK will acquire 100 per cent of the shares of Maxinutrition for a cash consideration of approximately £162 million including the repayment of outstanding debt. Maxinutrition is Europe’s foremost sports nutrition company by market share and has delivered sales growth of approximately 21% CAGR over the last 3 years.  The company recorded sales of approximately £36 million for the fiscal year ended April 2010.

Under the terms the agreement, GSK will acquire 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.

John Clarke, GSK President for Consumer Healthcare said the deal gives 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.

GSK will invest behind Maxinutrition’s science-proven products to extend the growth of Maxinutrition within its UK and European footprint and expand to the global marketplace, where GSK has existing infrastructure and capabilities, added Clarke.  The acquisition is a demonstration of GSK’s strategy to expand its Consumer Healthcare business through appropriate bolt-on acquisitions which meet its strict financial criteria, he said.

Peter Boddy, CEO, Maxinutrition, commented that Maxinutrition is a fast growing, focused sports nutrition business with excellent growth prospects and a strong management team – thus a natural fit for GSK and its ambition to extend and expand its Nutritional Healthcare business.

GSK’s strong commercial and R&D capability, coupled with the investments being made in expanding their global nutritional healthcare franchise in new markets and territories, offer tremendous new opportunities to develop the Maxinutrition brands and continue to deliver impressive growth in the coming years, he said. GlaxoSmithKline is one of the world’s leading research-based pharmaceutical and healthcare companies.

On the other hand, Maxinutrition, the parent company of Maximuscle, Maxifuel and Maxitone, is Europe’s leading sports nutrition company. Maximuscle is targeted at consumers who are focused on gaining muscle and increasing strength and power.

15 Dec 2010.