SlimFast UK and Europe snapped up by Supreme for £20.1m

SlimFast’s UK and European business has been snapped up by Typhoo owner Supreme in a £20.1 million deal.

Irish nutrition firm Glanbia has sold off the meal replacement powders business amid pressure on the brand from the rapid growth of weight loss drugs, such as Mounjaro and Wegovy.

It had put the business up for sale earlier this year after the European operations dragged on stronger trading in the US.

Consumer goods business Supreme said it has bought the business for a total of £20.1 million, including a deferred payment of £9 million due in 15 months’ time.

It said the SlimFast brand will complement and expand its current drink and wellness operation.

Supreme has shifted away from disposable vapes in recent years to grow its food, drink and nutrition divisions through a series of acquisitions, including deals to buy tea brand Typhoo, soft drinks firm Clearly Drinks and sports nutrition supplier FoodIQ.

The new owner said the deal is part of a strategy to snap up recognisable brands in the consumer space.

SlimFast’s UK and European assets reported unaudited revenue of £25.5 million and adjusted gross profit of £9.7 million last year.

Supreme told shareholders that it plans to move manufacturing of all its powder products inhouse to improve profitability.

Sandy Chadha, chief executive of Supreme, said: “We are excited to have acquired such an iconic brand in SlimFast, which we believe is highly complementary to our existing drinks and wellness category.

“Under our ownership and track record for product innovation, we believe the commercial opportunities to both enhance and broaden SlimFast’s market presence make it an ideal addition to our business.”