Science in Sport to double in size with purchase of PhD Nutrition

Science in Sport (SiS) plans to acquire PhD Nutrition for £32 million and intends to raise £29m to fund the majority of the purchase.

The significant move will double the size of the UK-headquartered endurance sports nutrition company.

PhD Nutrition is reportedly one of Britain’s leading protein brands, aimed at sports enthusiasts and gym lifestyle consumers. It generated revenue of £20.8 million for the year ended 31 August 2018 (adjusted EBITDA of £2.8 million). Science in Sport posted revenues of £15.6 million in 2017, beating its prior year tally by 28%.

PhD Nutrition is an established and growing international presence in over 45 countries across Europe, the Middle East, China and Australia. With an experienced management team with a strong track record, PhD Nutrition’s core sales channel is to see increasing revenue growth through Amazon.

“The acquisition of PhD is highly complementary, doubles the size of our business and accelerates our ambition to become a global leader in premium performance nutrition,” said SiS chief exec Stephen Moon.

“It is a compelling combination that will deliver a wider product offering, including premium protein, provide broader consumer reach and greater international presence, and dovetails our respective strengths in retail and e-commerce channels. Operating in a rapidly developing market, we see this transaction as an important step towards winning on the global stage. With the clear synergies and growth prospects of the combined group we anticipate delivering strong returns.”

UPDATED (7 Dec 2018)

The acquisition has now been completed.

Commenting on the Acquisition, Stephen Moon, Chief Executive of SiS, said: “This is a transformational deal for our business. It immediately doubles our size and accelerates our ambition to become a global leader in premium performance nutrition. SIS and PhD are two businesses that have complementary brands, products, operations and sales channels which together create a well-balanced, cash generative company with enhanced potential. We look forward to working with our new colleagues and delivering value to our shareholders who have supported us in delivering this significant deal.”