Glanbia has finalized the sale of its meal replacement brand, SlimFast, to Supreme for a total cash consideration of £20.1 million ($27 million). This figure includes £9 million of deferred consideration, which is expected to be paid in 15 months.
To fulfill the acquisition cost, the Group will utilize a combination of its existing cash resources and an asset-based lending facility.
Established in 1977 in the US, SlimFast is a prominent weight management brand renowned for its meal replacement shakes, bars, snacks, and various weight loss plans.
The brand maintains a strong presence in both the ready-to-drink and ready-to-mix powder markets. Additionally, it offers an advanced nutrition range, featuring high-protein, high-fiber, and gluten-free meal replacement shakes and smoothies.
SlimFast has built an established sales footprint across the UK and Europe, with key customers including Amazon, Home Bargains, B&M, Asda, Sainsbury’s, Tesco, and Morrisons. This acquisition will also provide Supreme access to retailers like Boots and Superdrug.
For the year ending December 31, 2024, SlimFast’s UK and European assets reported an unaudited revenue of £25.5 million, with an adjusted gross profit of £9.7 million.
SlimFast had been performing poorly for Glanbia—likely due to the emergence of weight-loss drugs. Nevertheless, Supreme believes the meal replacement brand is well-positioned to leverage the growing demand for GLP-1 products, which necessitate nutritional and protein supplementation during treatment and as a follow-on solution.
This acquisition augments Supreme’s existing drinks and wellness category and will enhance its footprint in the weight management market—a segment projected to reach £1.5 billion by 2027, according to Grand View Research.
Furthermore, the deal allows Supreme the opportunity to expand SlimFast’s reach globally, excluding markets in the Americas, Australasia, Caribbean, and Philippines.
Supreme plans to internalize the manufacturing of all powder products, which constitute 40% of turnover. This move will significantly scale its manufacturing operations, benefiting its entire drinks and wellness division.
“We are excited to have acquired such an iconic brand in SlimFast, which we believe is highly complementary to our existing Drinks & Wellness category,” stated Sandy Chadha, chief executive officer of Supreme.
“Under our ownership and track record for product innovation, we believe the commercial opportunities to enhance and broaden SlimFast’s market presence make it an ideal addition to our business.”
This news follows last month’s acquisition of SlimFast US by Heartland Food Products Group.
