Glanbia Buys Seltzer Companies

KILKENNY, Ireland—Glanbia plc (www.glanbia.com), an international dairy food and nutritional ingredients supplier, signed an agreement to purchase Carlsbad, Calif.-based Selzter Companies Inc. (www.seltzerchemicals.com) for a total of $105 million. Under terms of the transaction, which is subject to approval by the Federal Trade Commission (FTC), Glanbia will pay $80 million cash on completion and $25 million in deferred payments tied to the achievement of specific profit targets over the medium term. The business will continue to be run by the existing management team, led by its president, Wayne Seltzer. The transaction is expected to close in October 2006.

Glanbia management called the acquisition significant, noting Seltzer’s strong reputation with major food and beverage, nutritional supplements and pharmaceutical customers will advance Glanbia’s position in these market sectors. They further noted the acquisition creates an opportunity to extend Glanbia’s major investment in innovation and clinical research in nutritional products with sciencebased health benefits, and Seltzer’s growth prospects will broaden the potential for the Glanbia’s U.S. and international nutritional solutions business, where Glanbia supplies nutritional premixes and functional customized formulations.

“The acquisition of Seltzer Companies, combined with our existing Nutritionals business, which is performing well, gives Glanbia a strong growth platform to develop a global Nutritionals business and will be earnings enhancing in 2007,” said John Moloney, group managing director of Glanbia. “It also advances the international development of the group into key global growth markets. We welcome Wayne Seltzer and his team to the group.”