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Glanbia to Expand in U.S., No Big Acquisitions

Source: Reuters
05/03/2009

Dublin, March 5 - Irish food group Glanbia is planning rapid growth at its U.S. bodybuilding supplement maker Optimum Nutrition Inc, which it bought last year for $315 million, it said on Wednesday.

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Optimum, which makes protein powders, drinks and sports bars based on whey, has seen strong demand despite the economic downturn, Glanbia Group Managing Director John Moloney said.

"We see scope to double the size of that business over the next five to six years," Moloney told Reuters.

This year Glanbia is focusing on consolidation and repaying debt, with no major acquisitions planned, Moloney added.

It is also planning to expand the capacity of its U.S. joint venture Southwest Cheese by half soon, Moloney said.

The New Mexico-based company, which Glanbia started in 2006 jointly with the Greater Southwest Agency, delivered revenue of $600 million in 2008, Moloney said.

"We are looking at a proposal to expand that by about 50 percent in capacity. We expect to formally announce that shortly," he said.

Glanbia ranks itself as the leading producer of American-style cheddar cheese in the United States.



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