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Global dairy giant Lactalis has acquired UK direct-to-consumer nutrition brand Protein Works in a move aimed at accelerating the business’s expansion across the UK and international markets.

The acquisition brings together Lactalis’ scale in FMCG distribution, supply chain and brand development with Protein Works’ expertise in functional nutrition and digital direct-to-consumer capabilities.

Founded in 2012 by Mark Coxhead, Protein Works has grown into one of the UK’s fastest-growing lifestyle nutrition brands, offering a portfolio spanning protein shakes, meal replacements, wellness supplements and high-protein snacks. The Liverpool-headquartered business generates annual revenues of approximately £55m and has sold more than 500 million shakes globally.

Protein Works operates a vertically integrated business model, manufacturing products at its recently opened production facility in Speke, Liverpool, while distributing through its UK and European e-commerce platforms. The brand serves around three million customers worldwide, with key European markets including Germany, France, Ireland and Italy.

The deal marks a significant step for Lactalis as consumer demand for health, wellness and functional nutrition products continues to rise across Europe. The French dairy group said the acquisition would create “powerful synergies” between the two businesses while allowing Protein Works to retain its distinctive brand identity.

Protein Works founder Mark Coxhead said: "With such a talented team, now backed by Lactalis, the sky is the limit for the brand I started all those years ago in my spare bedroom.”

Laura Keir, CEO of Protein Works, added: “There are natural synergies between the two businesses, and a deep care for quality, customers and our teams. The move allows us to accelerate the growth of the Protein Works brand and reach new customers, whilst providing new expertise to the group as a whole.”

All Protein Works employees transferred to the Lactalis Group on 1 June, with Lactalis confirming it intends to preserve the company’s culture and brand positioning.

The acquisition also delivers a successful exit for investor YFM Equity Partners, which backed Protein Works in 2019 when the business generated revenues of around £13m.

Nicola McQuaid, portfolio partner at YFM and a Protein Works board member, said: “We identified the opportunity, backed the brand’s move to serve a mainstream lifestyle nutrition customer, supported the PW Campus investment and the team’s continued push into international markets,"

Professional services firm DWF advised the shareholders on the transaction, while investment bank Houlihan Lokey acted as exclusive corporate finance adviser.