Supreme News

Supreme (AIM: SUP), a leading manufacturer, supplier, and brand owner of fast-moving consumer goods, is pleased to announce the acquisition of the trade and selected UK and European assets of SlimFast, a market leader in meal replacement products, for a total cash consideration of £20.1 million* (including £9.0 million of deferred consideration due in 15 months’ time) (the “Acquisition”) from Glanbia PLC, a global nutrition and food company. The Group will satisfy the consideration for the Acquisition through a mixture of its existing cash resources and utilisation of its asset-based lending facility.

Founded in 1977 in the US, SlimFast is a heritage weight management brand, known for its meal replacement shakes, bars, snacks, and weight loss plans. SlimFast has a strong position in formats including ready-to-drink and ready-to-mix powder products, as well as an ‘Advanced Nutrition’ range, which includes high-protein, high-fibre, gluten-free meal replacement shakes and smoothies. SlimFast’s UK and European established sales footprint comprises Amazon, Home Bargains, B&M, Asda, Sainsbury’s, Tesco and Morrisons (existing customers to Supreme) and will provide Supreme access to Boots and Superdrug.

For the year ended 31 December 2024, SlimFast’s UK and European assets reported unaudited revenue of £25.5 million and adjusted gross profit of £9.7 million.

• The Acquisition is fully aligned with Supreme’s ongoing M&A strategy, adding highly recognised brands into its diverse portfolio of high frequency consumable products
• The Acquisition will be immediately earnings-enhancing
• SlimFast is highly complementary to Supreme’s existing Drinks and Wellness category, further expanding the Group’s presence in the weight management market – a market that is projected to reach £1.5 billion by 2027**
• Supreme believes that SlimFast is ideally placed to capitalise on the growing demand for GLP-1 products, which require nutrition and protein supplementation both during treatment and as an ideal “follow-on”
• Supreme anticipates unlocking meaningful synergies by integrating SlimFast into its well-established, fully vertically integrated distribution platform

• Supreme already services a number of key SlimFast customers with additional upsell opportunities already targeted across the c.55,000 retail sites that Supreme currently supplies, including leading retail chains, Cash & Carry, B2C ecommerce, and the convenience channel / independents, which do not currently stock SlimFast’s products
• The Acquisition further enhances Supreme’s retail network, particularly within the UK through the addition of new retail customers, such as Boots and Superdrug, providing further cross-selling opportunities for the Group
• The Acquisition also provides Supreme the opportunity to expand SlimFast globally***
• Supreme plans to move the manufacture of all powder products (40% of turnover) inhouse, thus providing considerable scale to its manufacturing operations, benefitting its entire Drinks & Wellness division.