The Hut Group (THG) has conditionally agreed to acquire nutrition snack bar developer and manufacturer Brighter Foods Limited from the Real Good Food plc for £43m.
The acquisition of Brighter, which has already reformulated the majority of THG Nutrition’s bar range, would enable THG to bring decades of expert knowledge in the formulation and production of high-quality, healthier snack bars in house, it said.
The deal would also enable THG Nutrition to reduce lead-times for new product launches, ensure that product IPs remained exclusive and deliver “substantial cost synergies” THG added.
The transaction, which is subject to shareholder approval, is expected to complete on or around 11 May 2021.
For the 12 months prior to March 2021, Brighter generated £19.8m in revenues and £3.7m adjusted EBITDA.
THG Nutrition’s portfolio of global, digital-first brands, includes Myprotein, Myvegan, Myvitamins, Exante and Command.
The proposed aquisition follows THG’s purchase of nutrition product suppliers, Claremont Ingredients Limited and David Berryman Limited in December 2020
Matthew Moulding, executive chairman and chief executive officer of THG said: “We are delighted to announce our first major acquisition within THG Nutrition in 2021.
“Brighter highly complements our developed vertical integration strategy and strengthens our capabilities in the growing convenience and snack bar market.
“Nutritional bars are a high growth category for THG, with significant product extension opportunity across all our brands.
“The Brighter team bring a wealth of bar manufacturing and product development expertise, and in line with the Claremont and Berryman’s acquisitions, enables THG to significantly accelerate the launch of further product innovation into global markets, while increasing the proportion of THG Nutrition products wholly manufactured in-house.”