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Glanbia Acquires Seltzer for $105 Million

By Rebecca Wright | September 6, 2006

Glanbia plc, the international dairy foods and nutritional ingredients Group based in Ireland, today announced the acquisition of a California based nutritional business, Seltzer Companies Inc., (Seltzer). The total consideration is $105 million, including $80 million cash on completion and $25 million deferred payments, which are contingent on the achievement of specific profits targets over the medium term. The transaction is subject to approval by the U.S. Federal Trade Commission and completion is expected in October 2006.

Seltzer is a leading U.S. nutritional solutions company with strong expertise in the development of customized nutrient formulations and the distribution of speciality ingredients for the nutritional supplement, food and pharmaceutical markets. It specializes in the development and supply of bulk fine nutrients (amino acids, minerals and vitamins) and nutritional premixes. Seltzer employs 94 people and services a customer base across the USA from three facilities in San Diego County. The business will continue to be run by the existing management team, led by Wayne Seltzer.

This is a significant acquisition for Glanbia:
•    Seltzer has a strong reputation with major food and beverage, nutritional supplements and pharmaceutical customers and advances Glanbia’s market position in these market sectors
•    Seltzer creates the opportunity to extend Glanbia’s major investment in innovation and clinical research in nutritional products with science-based health benefits; and
•    Seltzer’s growth prospects broaden the potential for the Group’s US and international nutritional solutions business where Glanbia is a key supplier of nutritional premixes and functional customized formulations.

The Seltzer business together with the Glanbia Nutritionals businesses give Glanbia plc a lead position in the Nutritional ingredients and solutions marketplace in the U.S. and globally. Glanbia Nutritionals is a leading provider of science-based nutritional solutions for products with enhanced health benefits.  This business produces a wide range of specialty whey proteins, dairy derived nutritional ingredients, minerals and vitamins. Glanbia Nutritionals supplies ingredients for use in ready-to-drink/ powdered beverages, nutritional bars, dairy products, snacks and confectionary products across a range of sectors such as sports nutrition, weight management etc. Glanbia Nutritionals has operations in the U.S., Ireland, Germany and the U.K. and sales offices in China, Brazil and Uruguay.

About the acquisition, John Moloney, Group Managing Director of Glanbia, commented, “Consumers worldwide are increasingly aware of the link between diet and health and as a result key sectors within the global nutritional market, such as functional foods and nutritional supplements, are growing very strongly. The acquisition of Seltzer Companies, Inc., 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. It also advances the international development of the Group into key global growth markets. We welcome Wayne Seltzer and his team to the Group.”

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