Glanbia to acquire Seltzer for up to $105mn

09/06/06 - newratings.com

LONDON, September 6 (newratings.com) – Milk and cheese producer Glanbia Plc (GLB-EUR) Wednesday agreed to acquire Seltzer for up to $105 million on a debt-free basis.

The Kilkenny, Ireland-based food group said it would utilise its existing financing facilities to pay $80 million in cash initially and an additional $25 million subject to specific performance targets. Glanbia expects the deal to be earnings accretive in 2007. Meanwhile, the company reported flat 1H profits, with adjusted earnings of 9.12c per share, up from 9.10c in the year-ago period. Glanbia added, "As trading currently stands, we expect to meet market expectations for the full year and we remain on track to achieve double digit growth in 2007."