DAVY VIEW

Glanbia has announced the acquisition of US based Flavor Producers (FP) for an initial consideration of $300m. The acquisition deepens Glanbia’s flavour technology footprint and is consistent with its strategy of acquiring complementary businesses in Nutritional Solutions (NS). The natural flavours and extracts market is an attractive and growing sub-segment of the broader Ingredients complex. Based on its initial consideration, Glanbia is paying c.15x EBITDA (12 months to February 2024). The transaction is due to close in H1-24 and is expected to be marginally accretive in its first full year of ownership.