US private equity group TSG Consumer is understood to have hired investment bank Credit Suisse to sell off the specialist nutrition firm, which makes the Muscle Milk brand of sports drink. Credit Suisse was apparently appointed in October to sound out potential buyers.
Glanbia’s nutrition arm is said to be facing competition from US-listed dairy ingredients firm Whitewave Foods and private equity owned sports nutrition business NBTY. The Carlyle Group controls NBTY following a $3.5bn buyout in 2010.
Cytosport is co-owned by TSG Consumer Partners and the Pickett family, which set up the business in 1998. The appointment of a new chief executive, Rob Green, last July prompted a strategic review that led to a sales process being kicked off.
The price tag for Cytosport is thought to be close to €370m, representing a multiple of almost 17 times earnings of €22m. Cytosport is said to have sales of more than €220m.
Glanbia has invested heavily in building up its presence in the fast-growing sports nutrition market as it taps into demand from gym-goers, sports players and bodybuilders for protein supplements.
Source: Independent.ie
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