GSK Acquires UK Sports Firm

LONDONGlaxoSmithKline (GSK) entered into an agreement to acquire Maxinutrition, a U.K. sports nutrition firm, from Darwin Private Equity. Subject to approval from Englands Office of Fair Trading, GSK will acquire 100 percent of the shares of Maxinutrition for a cash consideration of approximately £162 million (US$252.9 million), including the repayment of outstanding debt.

Under terms of the agreement, GSK will acquire all the brands of Maxinutrition, one of Europes leading sports nutrition companies. Maxinutrition has seen sales growth of approximately 21 percent CAGR over the past three years, and posted sales of approximately £36 million (US$56.2 million) for the fiscal year ended April 2010. With the acquisition, GSK extends its Nutritional Healthcare business with plans to extend the growth of Maxinutrition further into the European and international markets.

This deal will give GSK a strong presence in the fast developing protein-based sports nutrition market, appealing across a broad spectrum of consumers from elite athletes to sports participants and those seeking additional nutritional supplementation," said John Clarke, president of GSK Consumer Healthcare. GSK will invest behind Maxinutritions science-proven products to extend the growth of Maxinutrition within its U.K. and European footprint and expand to the global marketplace, where GSK has existing infrastructure and capabilities. The acquisition is a demonstration of GSKs strategy to expand our Consumer Healthcare business through appropriate bolt-on acquisitions which meet our strict financial criteria."

Peter Boddy, CEO, Maxinutrition, added: Maxinutrition is a fast growing, focused sports nutrition business with excellent growth prospects and a strong management teamits a natural fit for GSK and its ambition to extend and expand its Nutritional Healthcare business. GSKs strong commercial and R&D capability, coupled with the investments being made in expanding their global nutritional healthcare franchise in new markets and territories, offer tremendous new opportunities to develop the Maxinutrition brands and continue to deliver impressive growth in the coming years."