Dairy giant Lactalis has completed the acquisition of UK sports nutrition business Protein Works, marking a significant move into the fast-growing active nutrition category.
The French dairy group said the deal will strengthen its health and nutrition portfolio by adding Protein Works' expertise in protein-based products, direct-to-consumer capabilities and established brand presence in the UK and across Europe.
Founded in Liverpool in 2012, Protein Works develops and markets a range of active nutrition products including protein shakes, meal replacements, wellness supplements and snacks. The business generates annual revenues of around €65 million (£56m) and operates a fully integrated model, manufacturing products at its Liverpool facility and selling primarily through its online channel.
The acquisition sees approximately 150 employees join Lactalis from 1 June. The company said it intends to preserve Protein Works' brand identity as part of its integration into the group.
Protein Works has built a strong presence in the UK and has expanded into several European markets, including Germany, Switzerland, Austria, France, Ireland, Belgium and Italy.
Lactalis said the deal represents another step in its strategy to expand in higher-value nutrition segments and broaden a portfolio that already includes clinical nutrition brand Delical.
“We are very pleased to welcome Protein Works to Lactalis. The integration of this innovative company and talented teams strengthens our position in the fast-growing active nutrition market,” Emmanuel Besnier, chairman of Lactalis, said.
“By combining our longstanding expertise in dairy proteins and health nutrition with Protein Works' strong brand and innovative approach, we are confident we can continue to create products that respond to changing consumer expectations in this dynamic and growing category.”
Lactalis, one of the world's largest dairy companies, employs around 85,500 people globally and operates in 50 countries, with a portfolio that includes brands such as Président, Galbani, Parmalat and Leerdammer.
The acquisition comes as major food and drink companies seek exposure to the rapidly expanding health, wellness and sports nutrition sectors, where demand for protein-enriched and functional nutrition products continues to grow.
Earlier in March, French food giant Danone has announced a definitive agreement to acquire Huel, aimed at expanding further into the fast-growing functional and complete nutrition categories. Huel has built a strong presence in the UK, Europe and the US through its ready-to-drink shakes, powders and nutrition bars, supported by both direct-to-consumer sales and retail expansion.