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FOODAROM

Acquired by

GLANDIA NUTRITIONALS

CANADA Food Processing EV [1m USD - 100m USD] 08/2020

Target

FOODAROM

Acquirer

GLANDIA NUTRITIONALS

Context

Glanbia Nutritionals has acquired the Canadian flavor designer Foodarom for CAD $60 million (~USD $45 million). This acquisition aligns with Glanbia's strategy to grow its "Nutritional Solutions" (NS) division by adding complementary capabilities. Foodarom's expertise in custom flavors and masking agents is highly synergistic with Glanbia's core protein business: it allows Glanbia to sell not just the protein powder, but the entire flavored formulation (e.g., "Strawberry Whey Isolate" ready-to-mix) to its sports nutrition and lifestyle clients.

FOODAROM, which reported an EBITDA margin of LOGIN in 2019, is valued in this transaction at an EV/EBITDA multiple of LOGIN, representing a LOGIN premium to the 10.1x average currently observed in the AgriFood sector.

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Target

Founded in 2006, Foodarom is a Canadian custom flavor designer and manufacturer. It boasts a library of over 15,000 flavor recipes (liquid and powder) and specializes in creating turnkey flavor solutions for the food, beverage, and nutritional product industries. The company is particularly known for its expertise in masking agents (masking bitterness in plant proteins or high-intensity sweeteners) and functional ingredients. At the time of acquisition, Foodarom operated production facilities and innovation centers in Canada (Montreal), the US (Salt Lake City, San Diego), and Europe (Germany, Italy).

Ent. Value

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Equity Value

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Multiples Analysis

EV / Revenue

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EV / EBITDA

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EV / EBIT

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Historical Financials (EUR)

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EBITDA
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2019
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2018
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Other operations with FOODAROM

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