Protein company snapped up in £32m deal

Science in Sport

A market leading protein brand headquartered near Hull is to be acquired by a sports nutrition firm as part of a £32m deal.

PhD Nutrition, which is based in Willerby, is to be purchased by Lancashire-based Science in Sport – a listed firm which develops, manufactures and markets sports nutrition products for elite athletes and sports enthusiasts.

SiS this morning also announced a proposed placing to raise approximately £29m in order to fund the majority of the cash consideration of the proposed acquisition.

PHD is one of the UK’s leading protein brands with a reputation for high quality and innovative products aimed at sports enthusiasts and gym lifestyle consumers. The firm’s core sales channel will increase revenue growth through its Amazon sales channel.

It has an established and growing international presence in over 45 countries across Europe, the Middle East, China and Australia.

The company also has an experienced management team that has a track record of delivering consistent revenue growth and profitability.

For the year ended 31 August 2018, PhD generated revenue of £20.8m and had adjusted EBITDA of £2.8m.

Stephen Moon, chief executive of SiS, said: “The acquisition of PhD is highly complementary, doubles the size of our business and accelerates our ambition to become a global leader in premium performance nutrition.

“It is a compelling combination that will deliver a wider product offering, including premium protein, provide broader consumer reach and greater international presence, and dovetails our respective strengths in retail and e-commerce channels.

“Operating in a rapidly developing market, we see this transaction as an important step towards winning on the global stage. With the clear synergies and growth prospects of the combined group we anticipate delivering strong returns.”

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