On August 3, Smart Balance, Inc. announced it purchased Glutino Food Group for $66.3 million cash. With this purchase, Smart Balance picks up arguably the #1 most recognized gluten-free brand in the United States.
PARAMUS, N.J., Aug. 3, 2011 /PRNewswire/ -- Smart Balance, Inc. (NasdaqGM: SMBL) announced it acquired 100% of the equity interest of Importations DE-RO-MA, which owns Glutino Food Group ("Glutino"), for $66.3 million, from Claridge, aMontreal-based investment firm. Based in Laval, Quebec, Glutino is a leading manufacturer and marketer of innovative, premium-priced, gluten-free foods sold under the Glutino and Gluten Free Pantry brands. Glutino offers a wide range of shelf-stable and frozen gluten-free products, including snack foods, frozen baked goods, frozen entrees and baking mixes throughout North America and on its website www.glutenfree.com. Glutino had annual sales of $53.9 million during its fiscal year ended March 31, 2011.
Commenting on the announcement, Chairman and Chief Executive Officer Stephen Hughes stated,
"We are truly excited about adding the Glutino Food Group to our portfolio of health and wellness brands. Glutino has increased its sales approximately 30% annually over the past three years, and we are confident about its growth prospects and contribution to Smart Balance. The demand for gluten-free products is significant, and is now a category of over $2 billion in retail sales. We are bullish on the continuation of the category's 10% compound annual growth rate due to increased awareness and diagnosis of gluten-induced ailments, including celiac disease, gluten intolerance and wheat allergies."
Furthermore, Mr. Hughes stated, "The gluten-free segment is complementary with our corporate vision of creating a health and wellness innovation platform that builds brands targeted at highly motivated consumer need states. Just as our Smart Balance®, Earth Balance® and Bestlife™ brands address the health and wellness needs of consumers, Glutino addresses a specific dietary need by eliminating gluten in foods that consumers have to avoid for health reasons. Dedication to providing high-quality and great tasting products has enabled the company to pioneer and shape the gluten-free category. This has created a strong consumer following and established Glutino as the preeminent gluten-free brand."
"We are very impressed with the Glutino management team, led by Terence Dalton, and believe the skill sets of both the Glutino and Smart Balance teams will contribute to improving the performance of both companies. Both companies have similar missions and values. Through this combination, we believe Smart Balance's core competencies in sales, marketing and product development will help Glutino realize its growth potential, ultimately creating long-term value for our shareholders, and exciting opportunities for our new and existing employees," concluded Mr. Hughes.
"I know I speak for the Glutino team when I say we are enthusiastic about joining the Smart Balance organization," stated Terence Dalton, General Manager. "We are impressed with the company's leadership and vision and look forward to working together to grow its health and wellness platform. We are excited to be part of a strategically focused organization, committed to meeting consumer needs."
About Smart Balance, Inc.
Smart Balance, Inc. (NasdaqGM: SMBL) is committed to providing superior tasting heart healthier alternatives in every category it enters by avoiding trans fats naturally, balancing fats and/or reducing saturated fats, total fat and cholesterol, and/or by incorporating ingredients that consumers may be missing in their diets. The company markets the Smart Balance® line of products, which include Smart Balance® Buttery Spreads, Enhanced Milks, Buttery Sticks, Peanut Butter, Microwave Popcorn, Cooking Oil, Mayonnaise Dressing, Non-Stick Cooking Spray and Cheese, and also markets natural food products under the Earth Balance® brand and healthier lifestyle products under the Bestlife™ brand.
For more information about Smart Balance, Inc., Smart Balance® products and the Smart Balance™ Food Plan, please visitwww.smartbalance.com.
About the Glutino Food Group
Since 1983, the Glutino Food Group has been a trusted pioneer and leader in the gluten-free category. Based in Laval, Quebec, the company offers a wide variety of great-tasting, gluten-free foods consumers can trust. Products are available nationwide at local supermarkets, natural and organic retailers and on www.glutenfree.com.
For more information on The Glutino Food Group, visit www.Glutino.com.
SOURCE Smart Balance, Inc.