BSN Sells for $144 Million
For the total cost of $144 milion, Glanbia PLC, an international nutritional ingredients and cheese group, has acquired Bio-Engineered Supplements and Nutrition (BSN). So far, the sale is completely debt free, and earnings are expected to exponentially grow in 2011.
Who is BSN?
BSN is a leading industry giant in health, weight loss, workout, and other nutritional supplements, located in Boca Raton, Florida. It currently employs 140 people, and previous to this buyout, it was privately owned.
BSN was originally founded in 2001, and it has since become one of the industry’s biggest competitors, selling through 40,000 retailers all over the USA as well as over 90 different countries across the world. BSN has been honored with over 30 sports nutrition awards over the past 5 years, creating a wide consumer base and product loyalty.
BSN is considered to be a pioneer in many different industries such as pre workout powders, protein powders, fat burners, and other multi-functional supplements. In 2009 alone, BSN pulled in $135.4 million before interest and tax and paid out $10.1 million in taxes.
Why did Glanbia PLC buy BSN?
Glanbia PLC is already known as an industry giant and a major health corporation in and of itself, purchasing major competitor Optimum Nutrition in 2008. But the Glanbia board believes that the acquisition of BSN will significantly enhances its portfolio, providing growth opportunities that Glanbia would not otherwise have.
More specifically, Glanbia PLC believes that the acquisition of BSN will provide greater growth, higher margins, and bring Glanbia into new sectors and channels, providing the opportunity for greater international growth.
More about the future possibilities of Glanbia PLC
In a completely separate announcement, Glanbia PLC released a 2010 trading update, which showed that 20210 adjusted earnings per share should increase by 20% within the next year in direct correlation with the new merger with future adjusted earnings growing by approximately 11%-13% on a constant basis.
Glanbia Group Managing Director John Moloney has stated that “BSN is an excellent strategic fit with our Performance Nutrition business and adds strong brand and market positions that complement and extend our portfolio. Since the acquisition of Optimum Nutrition, we have established a market leading, scale position in the attractive, high growth, global sports nutrition sector. BSN is a very exciting acquisition for us and we are pleased to welcome the BSN team to Glanbia.
What should you expect in the future?
This announcement contains educated guesses and predictions about the future. This is in no way guaranteed, and prospects may change in the future. But statements have been made on a good faith basis by Glanbia directors. Because of the inherent changes and uncertainties of the market, actual results may vary.