Glanbia spending £265m to buy loss-making SlimFast
Irish food firm Glanbia is forking out $350m (£265m) to buy SlimFast, the weight loss and health and wellness brand that's popular across the US, UK and Ireland.
The price tag for the loss-making business is below the $400m (£303m) speculated figure that was placed on SlimFast when its current owners - Kainos Capital and Unilever - put it up for sale at the start of the year.
SlimFast markets a range of ready-to-drink shakes, powders, bars and snacks, as well as a range of new products.
The sale to Glanbia underscores how far the value of the SlimFast brand has slumped in the past two decades.
Florida-based SlimFast, founded in 1977 by Thompson Medical, used to be wholly-owned by Unilever, which paid $2.6bn (£2bn) for the company in 2000.
But the acquisition quickly soured for the consumer goods giant.
In 2005, Unilever slashed the value of SlimFast by £570m under Dutch and UK accounting standards, and then by another £175m under International Financial Reporting Standards (IFRS), acknowledging the acquisition was a failure.
Later that year, Unilever took another £310m write-down on SlimFast. Sales had slumped 20% in 2004, hit by the popularity of the Atkins Diet.
Glanbia chief executive Siobhan Talbot said that the SlimFast business will be an "adjacency" to the group's existing performance nutrition portfolio.