Dairy giant Fonterra is set to make a gain of $64 million on the sale of its interest in foodspring’s parent Goodminton A.G. as part of a deal which will see Mars acquire a majority stake in the German nutrition company.
The deal will see foodspring remain as a standalone business headed by the founders of Mars Edge, a segment of Mars, Incorporated which caters to human health and wellness through targeted nutrition. The business is using a ‘buy, build, partner’ strategy to drive its business growth.
foodspring’s portfolio includes protein shakes, supplements, snacks & bars, muesli & porridge, smart cooking solutions and a range of beverages. It also offers a nutrition and fitness platform “Coach” section, “The Magazine” its stand-alone content site, the Body Check recommendation engine and access to nutritionists through its customer service team.
“When we started Mars Edge, we set out to connect the food you want with the nutrition you need. Over the past six years, foodspring has been at the forefront of doing just that. Its targeted nutrition business has a distinctive position and loyal consumer base in Europe,” said Jean-Christophe Flatin, president, Mars Edge.
“We share the same vision to improve the way people live through nutrition and together we will use foodspring’s expertise across digital know-how, branding and food innovation to build one of the leading platforms in this space. The depth of knowledge on consumer needs brought by foodspring is a great asset and will help us to pioneer the emerging space of personalized nutrition.”
Philipp Schrempp and Tobias Schüle founded foodsprings with their financial co-founding partner ECONA AG in 2013.
“We are looking forward to accelerating the growth of our business by drawing on Mars’ global infrastructure, marketing and science capabilities, as well as its expertise in quality and food safety” said Schrempp, founder & CEO, foodspring.
Fonterra’s COO NZMP, Kelvin Wickham, said the partnership with foodspring has been an exciting early activity for Fonterra’s new Sports and Active Lifestyle business unit and gave Fonterra immediate and direct access to the fast-growing consumer segment.
“This continues to be a really attractive market for our dairy protein and dairy speciality ingredients and we will keep up the momentum in this market. We are excited about continuing our relationship with foodspring and its new owners Mars, who will remain a valued customer of our NZMP ingredients business,” Wickham said.
The transaction is expected to close in the third quarter 2019. Financial terms of the latest deal between the multinational giants were not disclosed.