Dive Brief:
- This week, Ireland-based Glanbia plc announced its 2015 full-year results, posting a sixth consecutive year of double digit earnings with a 10.6% increase in adjusted earnings per share.
- The company’s performance nutrition unit realized a 28.3% increase with EBITA of €135.6 million (approximately $149 million), the result of acquisitions, and its global ingredients unit experienced an 11.6% decrease with EBITA of €106.6 million (approximately $117.2 million), the result of difficult dairy markets.
- The company will undertake an acquisition strategy to strengthen its global ingredients unit, which is the largest part of its business.
Dive Insight:
The company aims to replicate the successful acquisition strategy of its performance nutrition unit to boost activity in its global ingredients unit, either through acquisitions or partnerships.
The acquisition approach has paid off for Ireland-based Kerry Group, which last year bought three U.S. firms for $735 million. The acquisitions increase Kerry's presence in the U.S. market, expands its flavoring, beverage and health product lines, and adds about $300 million in annual revenue.
Kerry has also acquired Wynnstarr Flavors and KFI Savory, part of Kraft Food Ingredients. The company’s officials believe health and wellness will be the biggest driver of change in the food ingredients industry.
Another firm, Israel-based Frutarom, has been on an acquisition spree to boost its global portfolio of specialty fine ingredients, completing 29 acquisitions in five years.