Glanbia gobbles up protein bar maker thinkThin

Irish food group Glanbia has agreed to acquire thinkThin, a Los Angeles-based maker of protein bars, for $217m cash.

Glanbia said the addition of thinkThin, which in the year to September made $84m of net sales from distributing its products in food, natural and mass retail channels in the US, would marginally improve earnings in 2016.

More crucially, the Kilkenny-based company said thinkThin will increase the presence of Glanbia's Performance Nutrition unit in the snack bar category and provide exposure to the rapidly expanding nutrition bar segment which is currently valued at $2.8bn in the US.

The acquisition also provides a platform for Glanbia to break into the 'better for you' snack products category.

"As a premium lifestyle nutrition product with very strong brand equity, thinkThin represents an excellent strategic addition to our portfolio of market leading performance nutrition brands," said managing director Siobhán Talbot.

"The transaction is firmly aligned with our overall growth ambitions and positions us well in the fast growing nutrition bar category as well as being value enhancing for our shareholders."

Shares in Glanbia were back at parity at €17.13 by mid-afternoon on Monday after an earlier 1% fall.